airlines.
Aviation Turbine Fuel (ATF) price at T3 terminal in Delhi was cut by Rs 2,117 per kilolitre (kl), or 3 per cent, to Rs 68,399 per kl with effect from midnight tonight, according to Indian Oil Corp , the nation's largest fuel retailer. The reduction, which comes on back of a steep 4.3 per cent (Rs 3194.72 per kl) cut in rates effected from October 1, was possible as rupee firmed up against the US dollar making and cheaper international oil.
Prior to these cuts, ATF price were hiked on five occasions since July.
In Mumbai, jet fuel will cost Rs 68,731 per kl as sgainst Rs 70,949.97 currently. Rates at different airports vary because of differential in local sales tax or VAT.
Kolkata would see price cut by Rs 2,246 to Rs 75,491 per kl while it will cost Rs 72,120 in Chennai from tomorrow as against Rs 74,423.43 currently.
Jet fuel constitutes over 40 per cent of an airline's operating costs and the reduction in prices will ease burden of the cash-strapped airlines. No immediate comments were available from the airlines on the impact of the price cut 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.
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