OMCs cut jet fuel prices by 2%

State oil marketing companies have cut jet fuel prices by 2% following a drop in crude oil prices. In March the oil companies had hiked the jet fuel price by 8% -the first hike since last July.

Price of jet fuel in Delhi has been cut to Rs 49,338 per kilolitre from Rs 50,363 per kilolitre in March.

Aviation turbine fuel accounts for 30-40% of domestic airlines expenses. Domestic airlines pay more for fuel than their regional peers, owing to state and central levies.

For airlines, hit hard by high fuel costs for much of 2013 and the first part of last year, the drop in jet fuel prices will mean lower operating costs and improved profitability.