Oil PSUs slash ATF prices by a further 6.8 per cent

31 December 2008

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.