Oil companies have gone ahead and reduced the prices of jet fuel prices by 2%. This is the fourth straight reduction in prices after April. Jet fuel prices will be reduced by Rs 1,376.81 per kl or to Rs 65,670.14 per kl in New Delhi with effect from midnight of June 01, 2012. In Mumbai, jet fuel will now cost Rs 66,587.90 per kl against Rs 68,022.08 per kl.
The three earlier reductions were to the tune of Rs 753.8 per kl in three previous fortnights. Despite the recent cut in prices of aviation turbine fuel (ATF), it still remains high and is higher than the level of Rs 62,557.12 per kl before the three price increases. However, any reduction in fuel prices will be welcomed by the cash strapped airlines industry as jet fuel forms 40% of their operating cost.
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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