Update 1: Oil marketing companies slash jet fuel prices by 16.8 per cent

New Delhi: State-run oil companies on Friday slashed jet fuel prices by over Rs9,400 per kilo litre, or 16.8  per cent, in a move that should ease pressure on the struggling airline industry substantially. The reduction has brought down prices by about Rs24,000 per kilo litre since September.

Indian Oil, Bharat Petroleum and Hindustan Petroleum cut jet fuel or aviation turbine fuel (ATF) price in Delhi by Rs9,429.87 per kl to Rs47,017.93 per kl, industry officials said.

The cut would be effective from midnight tonight.
 
Earlier, Indian Oil Corporation and other public sector oil marketing companies including Hindustan Petroleum and Bharat Petroleum had said they would slash jet fuel prices by about Rs6,000 per kilo litre from midnight tonight.  IOC chairman Sarthak Behuria said the reduction would be made in line with the softening of international oil prices.

"The reduction would be about Rs 6,000 per KL," he said.

The exact amount would be announced later in the evening after companies compute the new prices based on the average rates for second fortnight of October.
 
The announcement comes even as fuel prices have been spiraling downwards for quite some time. Airlines have been reluctant to pass on the benefits of reduced prices to passengers even as they try to make up for massive losses incurred over the previous months.

It remains to be seen if fuel surcharges are slashed this time around even as the holiday season gets into motion. Airlines may also feel the need to attract passengers which have deserted air services in huge numbers as ticket prices have spiraled upwards.