Oil companies to cut jet fuel prices by Rs 273 per kilolitre
If you missed our coverage, here are the top 10 stories of the day.
State-owned oil companies on Tuesday cut jet fuel prices by a marginal Rs 273 per kilolitre, 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 Tuesday midnight, Indian Oil said, making the announcement on behalf of the industry.
The reduction comes on back of a Rs 311.74 per kl cut in rates effected from May and a Rs 169.3 per kl price reduction from April 16.
But these reductions 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 68,022.08 per kl from Wednesday 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—Indian Oil, Hindustan Petroleum and Bharat Petroleum—revise jet fuel prices on the 1st and the 16th of every month, based on the average international price in the preceding fortnight.