Public sector oil companies today slashed jet fuel or Aviation Turbine Fuel (ATF) prices 3.7 per cent, the tenth reduction since September, taking rates to early 2005 levels..
Today's price cut comes after most leading airlines more than doubled their lowest fares last week citing low passenger loads, leading to an investigation by the Monopolies and Restrictive Trade Practices Commission (MRTPC).
ATF prices in Delhi were slashed to Rs 29,158 per kilolitre, effective midnight tonight, an official of Indian Oil, the nation's largest fuel retailer, said.
The fuel used by airlines till today was priced at Rs 30,288 per kl. After today's Rs 1,130 a kl reduction, jet fuel prices stand at early 2005 levels.
For the 3.3 per cent increase in rates on January 16, jet fuel prices have been reduced for the tenth time today since September 1, 2008, when international crude oil prices started to decline.
In Mumbai, home to the nation's busiest airport, ATF rates were down by Rs 1,191 per kl to Rs 29,985 per kl today.
ATF prices had peaked to Rs 71,028.26 per kl (in Delhi) in August on international crude prices touching historic high of $147 a barrel. But they have since been slashed every month till October and twice in November.
State-run Indian Oil Corp, Hindustan Petroleum and Bharat Petroleum revise ATF rates on the 1st and 16th of every month based on the average international jet fuel rates in the preceding fortnight.
