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Oil companies cut jet fuel prices by a marginal 0.25%

16 Apr 2012 Evaluate

Oil companies have cut jet fuel prices by a marginal 0.25% following some declines in benchmark international rates. However, the reduction comes after three consecutive rounds of price hikes. Even though the reduction is small, it will bring in some relief to the cash-strapped airlines given the fact that jet fuel constitutes 40% of an airline's operating cost.

The price of aviation turbine fuel (ATF), or jet fuel, in Delhi has been reduced by Rs 169.3 per kilolitre (kl), to Rs 67,631 effective from Sunday midnight. The reduction comes on back of steep hikes in rates effected on March 1, March 16, and April 1. ATF rates were increased by 3.2% on March 1, Rs 1,298.88 per kl on March 16 and by another 2.8% on April 1.

Jet fuel was priced at Rs 62,557.12 per kl before the three price increases. In Mumbai, jet fuel will now cost Rs 68,631 per kl against Rs 68,806.82 per kl earlier. The three fuel retailers -IOC, Hindustan Petroleum and Bharat Petroleum - revise jet fuel prices every fortnight, usually on the 1st and 16th of every month, based on the average international price in the preceding fortnight.

 

 

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