Aviation Turbine Fuel, or ATF, price at Delhi was cut by Rs 3,025.34 per kilolitre, or 4 per cent, to Rs 71,800.21 per kl, according to Indian Oil Corp, the nation's largest fuel retailer.
The rate cut follows a Rs 753.34 per kl hike in rates last month.
Price was cut as international oil prices fell and rupee appreciated against the US dollar, making imports cheaper.
In Mumbai, jet fuel costs Rs 74,105.16 per kl as against Rs 77,322.6 per kl previously, IOC said. Rates at different airports vary because of difference in local sales tax or VAT.
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No immediate comments were available from the airlines on the impact of the price cut on passenger fares.
Separately, the price of non-subsidised cooking gas (LPG), which customers buy after using up their quota of 12 subsidised cylinders, was cut by Rs 100 per cylinder, the third straight reduction in rates since February.
The 14.2-kg cooking gas cylinder that consumers buy beyond their entitled 12 bottles at subsidised rates, will now cost Rs 980.50, down from Rs 1,080.50, in Delhi.
A subsidised LPG cylinder in Delhi costs Rs 414. Non-domestic LPG rates were at the beginning of the year hiked by a steep Rs 220 per cylinder but have now been cut in line with softening of international rates.
IOC said losses on LPG have come down to Rs 505.50 per 14.2-kg subsidised cylinder from Rs 605.50 in previous month and Rs 656 in February. The loss was Rs 762.50 in January.