New Delhi: State-owned oil companies on Tuesday cut jet fuel prices by about 4 per cent even as international oil rates came off a two-year high. This is the second such price cut in a month.
Oil companies reduced aviation turbine fuel (ATF) price by Rs2,327.89 per kilolitre or 3.95 per cent, to Rs56,466.11 per kl in Delhi with effect from Tuesday midnight, an official of Indian Oil Corp, the nation's largest fuel retailer, said.
ATF rates were cut for the first time in eight months on 16 May when prices were brought down by 2.9 per cent. With the second cut ATF price have come down by Rs4,094 per kl this month.
The two successive cuts this month have come after 14 successive hikes since October 2010.
ATF price in Mumbai, home to nation's busiest airport, were slashed to Rs57,166.96 per kl from Rs59,602 per kl.
Airline companies are yet to respond to the price cuts and there is no indication on the impact these cuts are likely to have on passenger fares.
On an average, fuel costs account for 40 per cent of the operating cost of any airline. In India rates also vary from airport to airport depending upon the local sales tax.
Fuel marketing companies IOC, Hindustan Petroleum Corp (HPCL) and Bharat Petroleum Corp (BPCL) revise jet fuel prices on the 1st and 16th of every month, based on the average international price in the preceding fortnight.