In what will come as a minor relief to airline companies, oil firms have slashed jet fuel prices by a marginal 0.4%. This is the third such reduction since April this year and is in sharp contrast to the substantial hikes announced earlier in March and early April.
Jet fuel will now be Rs 272.76 per kl lesser and cost Rs 67,046.95 per kl in Delhi with effect from midnight of May 15, 2012. In Mumbai, the cost will be Rs 68,022.08 per kl as compared to the earlier Rs 68,306.21 per kl.
The earlier cuts by the PSUs were to the tune of Rs 311.74 a kl in May and Rs 169.3 per kl on April 16, 2012. However, these are in sharp contrast to the hikes of 3.2% on March 1, Rs 1,298.88 per kl on March 16 and by another 2.8% on April 1.
The cuts are expected to bring in marginal relief to the cash strapped airlines as jet fuel comprises of 40% of their expenses. IOC, Bharat Petroleum and Hindustan Petroleum revise fuel prices on the 1st and 16th of every month.
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