Oil companies slash jet fuel prices by 7.3% in India
Jet fuel (ATF) rates were cut by a steep 7.3% on Saturday, the fourth straight reduction in prices since August on back of falling international oil rates.business Updated: Nov 01, 2014 19:07 IST
Jet fuel (ATF) rates were cut by a steep 7.3% on Saturday, the fourth straight reduction in prices since August on back of falling international oil rates.
The price of aviation turbine fuel (ATF), or jet fuel, at Delhi was cut by Rs 4,987.7 per kilolitre, or 7.3%, to Rs 62,537.93 per kl, oil companies announced on Thursday.
This is the fourth reduction in jet fuel rates since August. Rates were cut by almost 3% or Rs 2,077.62 per kl on October 1. Declining international oil prices have made imports cheaper, resulting in price reduction.
In Mumbai, jet fuel will cost Rs 64,414.98 per kl from Saturday as against Rs 69,610.50 per kl previously. The rates vary because of differences in local sales tax or VAT.
Jet fuel constitutes over 40% of an airline's operating costs and the price cut will ease the financial burden of cash-strapped carriers.
No immediate comment was available from airlines on the impact of the price cut on passenger fares.
The three fuel retailers - IOC, Hindustan Petroleum Corp and Bharat Petroleum Corp - revise jet fuel and non-subsidised LPG prices on the first of every month, based on the average international prices in the preceding month.
On Friday, oil companies had cut petrol price by Rs 2.41 per litre and diesel by Rs 2.25 per litre. The sixth reduction in price since August has meant that petrol costs Rs 64.25 per litre in Delhi, Rs 9.36 per litre less than what it cost in July.
The second reduction in diesel rates in one month has led to the price coming down to Rs 55.60 per litre.
Also, the price of non-subsidised cooking gas (LPG) was cut by Rs 18.5 to Rs 865 per 14.2-kg cylinder.
Since August, this is the fourth reduction in rate of non-subsidised LPG which consumers buy after exhausting their quota of sub-market priced domestic cooking gas.
Non-subsidised LPG in Delhi was priced at Rs 922.50 in July and rates have been reduced in every subsequent month.