The fuel price of aviation turbine (ATF) or jet fuel in New Delhi declined by Rs.1, 241 per kiloliter (kl), or 2 percent to Rs.61, 169 per kl with effect from midnight on the night of Saturady, according to the India Oil Corp, the country's largest oil company.
The reduction occurs in the back of a huge 5 per cent (Rs.3, 260 per kl) Reduction of rates incurred from June 16.This is the sixth straight cut in jet fuel rates since mid-April. State-owned enterprises of oil had the June 1 cut rates by 2 per cent (Rs.1, 376.81 per kl) and Rs.753.8 kl to reduce prices in the three previous fortnight.After reduction of the Sabbath, ATF prices have reached levels of October 2011 after hitting a high of Rs.67, 800.3 on 1 April this year.
Jet fuel had reached a historic peak of Rs.71, 028.26 per kl in August 2008 shortly after the international oil prices hit a record U.S. $ 147 per barrel.In Mumbai, jet fuel will cost Rs.61, 934 per kl from tomorrow against Rs.63, 178 per kl now.
Jet fuel accounts for over 40 percent of the costs of operating an airline and the reduction of prices will ease the burden on cash-strapped airlines.No immediate comment was available from the airlines on the impact of price reduction of passenger fares.The three fuel retailers - IOC, Hindustan Petroleum and Bharat Petroleum - revise prices of jet fuel in the first and 16th of each month, based on the international average in the previous fortnight.
The reduction occurs in the back of a huge 5 per cent (Rs.3, 260 per kl) Reduction of rates incurred from June 16.This is the sixth straight cut in jet fuel rates since mid-April. State-owned enterprises of oil had the June 1 cut rates by 2 per cent (Rs.1, 376.81 per kl) and Rs.753.8 kl to reduce prices in the three previous fortnight.After reduction of the Sabbath, ATF prices have reached levels of October 2011 after hitting a high of Rs.67, 800.3 on 1 April this year.
Jet fuel had reached a historic peak of Rs.71, 028.26 per kl in August 2008 shortly after the international oil prices hit a record U.S. $ 147 per barrel.In Mumbai, jet fuel will cost Rs.61, 934 per kl from tomorrow against Rs.63, 178 per kl now.
Jet fuel accounts for over 40 percent of the costs of operating an airline and the reduction of prices will ease the burden on cash-strapped airlines.No immediate comment was available from the airlines on the impact of price reduction of passenger fares.The three fuel retailers - IOC, Hindustan Petroleum and Bharat Petroleum - revise prices of jet fuel in the first and 16th of each month, based on the international average in the previous fortnight.
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