After increasing it four times in a row, the state-run oil firms today cut jet fuel prices by 5.7 per cent on easing international rates.
Aviation Turbine Fuel(ATF) rates in Delhi were lowered by Rs 2,221 per kilolitre to Rs 36,338 per kl, effective midnight tonight, an official of Indian Oil Corp (IOC) said.
Indian Oil, Bharat Petroleum and Hindustan Petroleum had in the past two months raised ATF rates four times on firming international oil prices. Jet fuel rates were Rs 31,614.51 per kl on May 1 and in four instalments they were raised to Rs 38,557.56 per kl by July 1.
"International rates have eased since," he said. The basket of crude oil India buys has averaged for July at $63.42 per barrel. The July average was lower than $69.12 a barrel average price of Indian basket of crude for June. It was also lower than $69.57 a barrel average in the second fortnight of June based on which jet fuel rates were hiked by 6 per cent from July 1.
On July 1, jet fuel rates were increased by Rs 2,306 per kl in Delhi to Rs 38,557.56 per kl.
In Mumbai, home to the nation's busiest airport, the rate will come down from Rs 39,789.02 per kl to Rs 37,475 per kl.
The decline in ATF price, which constitutes 40 per cent of airlines' operating cost, will ease some pressure off the cash-strapped domestic carriers.
Jet fuel in Kolkata will be cheaper at Rs 44,411 per kl from Rs 46,710.92 per kl, while in Chennai the price has been reduced by Rs 2,360 per kl to Rs 40,164 per kl.
ATF prices had peaked to Rs 71,028.26 per kl (in Delhi) in August last year on international crude prices touching a historic high of $147 a barrel. But subsequently the rates had come down, slashed every month till October and twice a month from November.
The three firms revise jet fuel rate every fortnight based on trends in international markets.
