For the second time this month, state-owned oil firms on Wednesday slashed jet fuel prices by 2.1% in line with softening international rates. The aviation turbine fuel or ATF price in Delhi has been cut by Rs 812.33 per kilolitre to Rs 37,084.50 per kl, with effect from midnight tonight, an official of the Indian Oil Corp (IOC), the nation’s largest fuel retailer, said. IOC along with its sister PSUs, Bharat Petroleum Corp and Hindustan Petroleum Corp had from September 16 cut jet fuel rates by as much as 3.2% to Rs 37,896.83 per kl.
Jet fuel will cost Rs 38,246.60 per kl in Mumbai, from Rs 39,098.99. The reduction in rates will help cash-strapped airlines cut fuel cost, which constitutes roughly 40% of their operational cost. No comments could be obtained from any airline on the possible impact on fares. ATF will cost Rs 45,235.94 per kl in Kolkata as against Rs 46,101.86 per kl currently and Rs 40,956.89 per kl in Chennai (Rs 41,850.52 per kl currently).
The three firms had in three installments raised jet fuel price by 7.6% since mid-July. Jet fuel price in Delhi on July 16 was Rs 36,388.18 per kl and was raised first to Rs 36,922.67 per kl on August 1 and then by 4.5 per cent to Rs 38,585.24 per kl. Last month it was marginally raised by 1.4% to Rs 39,118 per kl. The three oil firms revise jet fuel prices on the first and the 16th day of every month based on the average international oil price in the previous fortnight.
Source: October 01, 2009, The Financial Express
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