New Delhi, May 15 - State-owned oil companies today cut jet fuel prices by a marginal Rs 273 per kilolitre or kl, the third straight reduction in rates since April.
The price of aviation turbine fuel (ATF), or jet fuel, in Delhi was reduced by Rs 272.76 per kl, or 0.4 per cent, to Rs 67,046.95 per kl with effect from midnight tonight, Indian Oil Corp, making the announcement on behalf of the industry, said.
The reduction comes on back of a Rs 311.74 a kl cut in rates effected from May and a Rs 169.3 per kl price reduction from April 16.
But these reduction are dwarfed by the steep increases effected in March and early April. ATF rates were increased by 3.2 per cent on March 1, Rs 1,298.88 per kl on March 16 and by another 2.8 per cent on April 1.
Jet fuel was priced at Rs 62,557.12 per kl before the three price increases.
In Mumbai, jet fuel will cost Rs 68022.08 per kl from tomorrow against Rs 68,306.21 per kl now.
Jet fuel constitutes over 40 per cent of an airline's operating cost and the marginal reduction in prices will somewhat ease the burden of the cash-strapped airlines.
No immediate comment was available from the airlines on the impact of the price reduction on passenger fares.
The three fuel retailers -- IOC, Hindustan Petroleum and Bharat Petroleum -- revise jet fuel prices on the 1st and 16th of every month, based on the average international price in the preceding fortnight. PTI