Mumbai: Public sector oil firms have slashed aviation turbine fuel (ATF) prices by 1.9%, the first reduction since February this year, in line with stable international oil prices that have been ruling at $68 per barrel. Public sector companies, Indian Oil Corp (IOC), Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corp (HPCL), revise ATF prices on the first of every month, in line with the movement in international prices.
As a result of the cut, ATF prices in Delhi are now at Rs36,746.53 per kilolitre (kl), down from Rs37,421.94 per kl. In Mumbai, ATF prices have come down by Rs717.09 per kl to Rs37,973.3 per kl. The ATF price for foreign airlines, which do not pay local sales tax, was cut to $697.89 per kl from $707.12 per kl in Delhi.
Oil firms had raised jet fuel prices for three consecutive months since February.
According to industry sources, ATF prices come to about 45% of the operational cost of an airline, which is on the higher side, as the domestic base price of ATF is higher compared to what is charged in Dubai or Singapore.