Jet fuel prices cut by 1%

Price of aviation turbine fuel in Delhi was lowered by Rs 766.34 per kilolitre

Jet fuel or ATF prices were today cut by 1%, the second reduction since April, after a decline in international rates.

The price of aviation turbine fuel (ATF) in Delhi was lowered by Rs 766.34 per kilolitre, or 1%, to Rs 71,033.87 per kl, according to Indian Oil Corp, the nation's largest fuel retailer. The price had been reduced by 4%, or Rs 3,025.34 per kl, on April 1.

Official sources said international oil prices fell, negating the depreciation of the rupee against the US dollar.

In Mumbai, jet fuel costs Rs 73,306.89 per kl as against Rs 74,105.16 per kl previously, IOC said. Rates at different airports vary because of local sales tax or VAT.

Jet fuel constitutes over 40% of an airline's operating costs and the price cut will reduce the financial burden of the cash-strapped carriers.

No immediate comments were available from the airlines on the impact of the price cut on passenger fares.

The three fuel retailers -- IOC, Hindustan Petroleum Corp and Bharat Petroleum Corp -- revise jet fuel prices on the first of every month, based on the average international price in the preceding month.