15 February,2010 08:37 PM IST | | Agencies
State-run oil companies on Monday cut jet fuel prices by 2.5 per cent after drop in international crude prices which earlier rose to $82-84 per barrel.
Jet fuel in Delhi will now cost Rs 37,982 per kilolitre, a cut of Rs 974, while in Mumbai, it will be priced at Rs 39,167 per kilolitre, which is Rs 1,015 per kilolitre lower than present.
The new rates will be effective from midnight, an Indian Oil Corporation official said.
The cut in rates of Aviation Turbine Fuel (ATF), also called jet fuel, is the second such reduction during this month with prices cut by as much as 5.5 per cent Feb 1 to Rs 38,956 per kilolitre.
Airlines which had raised fares after hike in aviation fuel price till recently are unlikely to cut down their fares as the industry is gradually picking up on passenger loads.
The rates of aviation fuel which are fixed on the global trend of crude rates in the previous fortnight are now at par with those prevalent in October 2009.
Jet fuel, which constitutes 35 to 40 per cent of a carrier's operational costs, had reached Rs 71,028.26 per kilolitre in August 2008 when international crude oil prices touched $147 per barrel (159 litres).
