Oil retailers reduce jet fuel prices. To benefit aviation

New Delhi, Sep 1: For the second time in one month, state-owned oil firms cut jet fuel, or ATF, price in line with softening of rates in the international markets. The move will reduce burden on the aviation industry.

Aviation Turbine Fuel (ATF) price at Delhi's T3 airport was cut by Rs 429 per kilolitre (kl), or 0.75 per cent, to Rs 56,260 per kl from today, an official of Indian Oil Corp, the nation's largest fuel retailer, said.

The companies had from August 16 cut jet fuel rates by Rs 1,156 per kl or about 2 per cent. Jet fuel makes up for 40 per cent of an airlines' operating cost.

ATF in Mumbai, home to the nation's busiest airport, will cost Rs 446 per kl less at Rs 56,978 per kl from today as against the old price of Rs 57,424 per kl.

No comment could be immediately obtained from airlines on the impact of the price reduction on passenger fares.

ATF prices vary from airport to airport, depending on the local sales tax or VAT.

IOC and its sister public sector retailers, Hindustan Petroleum Corp (HPCL) and Bharat Petroleum Corp (BPCL), revise jet fuel prices on the 1st and 16th of every month, based on the average international price in the preceding fortnight.

PTI