Oil companies cut aviation fuel prices by 4.3 %
State-run oil companies on Thursday cut aviation fuel prices by 4.3 per cent following the government's decision on Wednesday to reduce customs duty on fuel to five per cent.
According to an official, aviation turbine fuel (ATF) will cost Rs 66,226.66 per kilolitre in Delhi from Thursday.
Earlier in May, the ATF prices in Delhi had been hiked to Rs 69,227.08 per kilolitre.
Similarly in Mumbai, the effective price of ATF would come down to Rs 68,626.87 per kilolitre from Rs 71,759.06, said an aviation ministry official in New Delhi.
Domestic airfares shot-up after the oil companies hiked aviation fuel prices by around 19 per cent on May 31.
"The prices have been cut after the finance ministry reduced customs duty on ATF to five per cent from 10 per cent," the official said.
Senior officials of various airlines met aviation ministry officials on Wednesday and expressed their concern over the growing ATF prices.
Civil Aviation Minister Praful Patel has told them that they can prune their air services if ATF prices continue to go up.
With global oil prices sky-rocketing, the airlines have hiked fuel surcharge five times during the past five months, passing on the additional financial burden to the passengers.
In May, they raised the fuel surcharge on air tickets on short-haul flights to Rs 1,950 and to Rs 2,350 on long-haul flights, as the oil firms increased ATF price.