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Business News/ Industry / Energy/  Jet fuel prices reduced by 7.3%
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Jet fuel prices reduced by 7.3%

The price of ATF at Delhi was cut by Rs4,987.7 per kilolitre to `62,537.93 per kl, oil marketing firms said Saturday

Jet fuel constitutes more than 40% of an airline’s operating costs and the price cut will ease the financial burden of cash-strapped carriers. Photo: Ramesh Pathania/MintPremium
Jet fuel constitutes more than 40% of an airline’s operating costs and the price cut will ease the financial burden of cash-strapped carriers. Photo: Ramesh Pathania/Mint

New Delhi: Aviation turbine fuel (ATF), or jet fuel, rates were cut on Saturday by a steep 7.3%, the fourth straight reduction in prices since August on back of falling international oil prices.

The price of ATF at Delhi was cut by 4,987.7 per kilolitre, or 7.3%, to 62,537.93 per kl, oil companies announced on Saturday. Rates were cut by almost 3%, or 2,077.62 per kl on 1 October. In Mumbai, jet fuel will cost 64,414.98 per kl after the reduction compared with 69,610.50 per kl previously. The rates vary because of differences in local sales tax or VAT.

Declining international oil prices have made imports cheaper, resulting in price reduction.

Jet fuel constitutes more than 40% of an airline’s operating costs and the price cut will ease the financial burden of cash-strapped carriers. No immediate comment was available from airlines on the impact of the price cut on passenger fares.

The three fuel retailers—Indian Oil Corp. Ltd, Hindustan Petroleum Corp. Ltd and Bharat Petroleum Corp. Ltd—revise jet fuel and non-subsidized LPG prices on the first of every month, based on the average international prices in the preceding month.

On Friday, oil companies had cut petrol price by 2.41 a litre and diesel by 2.25 per litre. The sixth reduction in price since August has meant that petrol costs 64.25 per litre in Delhi, a reduction of 9.36 per litre since July. The second reduction in diesel rates in one month has led to its price coming down to 55.60 a litre.

Also, the price of non-subsidized cooking gas (LPG) was cut by 18.5 to 865 per 14.2-kg cylinder. Since August, this is the fourth reduction in rate of non-subsidized LPG which consumers buy after exhausting their quota of sub-market priced domestic cooking gas. PTI

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Published: 01 Nov 2014, 06:39 PM IST
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