State-owned oil marketing companies today cut the prices of aviation turbine fuel (ATF) or jet fuel by a further 6.8 per cent, making the eighth straight reduction since September.

With the latest cut, jet fuel in Delhi will cost Rs2,234.07 less at Rs30,457.21 per kilolitre effective midnight tonight, sources at Indian Oil Corporation, the nation's largest fuel retailer, said.

Jet fuel prices, which make up half of airlines' operating costs, have steadily fallen and is currently around 45 per cent of their all-time high level of Rs71,028.26 (Delhi) in August, and are at its July 2005 levels.

In Mumbai, ATF will cost Rs31,378.78 per kl from tomorrow against Rs33,719.47 per kl at present.

The reduction in jet fuel prices have already triggered a spate of reductions in airfares.

State-run Air India has cut fares by up to 82 percent, while top private carrier Jet Airways reduced them by about 40 percent, they said earlier this week.

Officials at Kingfisher Airlines and Spicejet said they would decide on price cuts during the week.

Indian Oil, Bharat Petroleum and Hindustan Petroleum revise jet fuel prices twice a month - on the 1st and 16th - based on the average imported price in the preceding fortnight.

The three firms had in December cut jet fuel prices on an average by Rs2,480 per kl and then by 11 per cent or Rs4,208 per kl.