Home BusinessOil firms cut ATF prices by 1.6%
For the second time this month, state-run oil companies today cut jet fuel prices to ease the burden on cash-strapped airlines.
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Aviation turbine fuel (ATF) prices in Delhi was reduced by Rs 649 or 1.6 per cent to Rs 39,319 per kilolitre, effective midnight tonight, an official of Indian Oil Corp, the nation"s largest oil firm, said today.
On December one, IOC, Bharat Petroleum and Hindustan Petroleum had reduced jet fuel rates by one per cent on easing international oil prices.
In Mumbai, ATF rates were reduced by Rs 677 to Rs 40,560 per kl. The two consecutive price reductions come on the back of 2.4 per cent increase in jet fuel prices last month.
The three oil firms revise jet fuel prices on the first and the 16th day of every month based on the average global oil price in the previous fortnight.
The ATF price in Kolkata has been cut by Rs 663 per kl to Rs 47,558 and that in Chennai by Rs 684 to Rs 43,354, the official said.
Jet fuel constitutes roughly 40 per cent of the operating cost of an airline and the reduction in fuel rates would help ease the burden of Indian carriers, most of whom are loss making.