Public sector oil marketing companies on Friday cut Aviation Turbine Fuel (ATF) or jet fuel prices by a steep 17 per cent in line with a sharp reduction in international crude oil prices, fuelling speculation that airlines would cut fares or fuel surcharges. However, airlines remained tightlipped and industry indications are that they are unlikely to reduce fares as they have suffered heavy accumulated losses over the past months.
As per the new prices for November effective from midnight on Saturday, ATF in Delhi would cost Rs 47,018 per kilolitre against Rs 56, 448 for October, a drop of 16.7 per cent and in Mumbai it would cost Rs 48,657 against Rs 58,479 per KL in October, down by 16.8 per cent.
Over the last one month, international crude oil prices have dropped from $ 98 a barrel on September 30 to $63.47 a barrel quoted on October 31 and are expected to drop further.
From August and up until this month oil marketing companies have cut jet fuel prices by 37 per cent.
“It is good news. We will wait and watch considering the accumulated losses on account of steep rise in ATF prices for the major part of the year,” said Jitendra Bhargava, executive director, Air India.
Other leading airlines offered no immediate comment.