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OMCs cut ATF prices by 1.3% or Rs 833/KL

16 Dec 2011 Evaluate

The government owned oil marketing companies (OMCs) after the three successive price hikes, reduced the Aviation Turbine Fuel (ATF) or jet fuel by 1.3%. The decline in ATF prices has come following the decline in commodity’s international price.

Earlier, on December 1, the OMCs increased the ATF prices by 3.7%. Prior to this, the OMCs have increased the jet fuel prices by Rs 1,195 per KL from November 16, and by 3.8% or Rs 2,845 per KL from November 1.

The jet fuel price was cut by Rs 833 per kilolitre (KL) or 1.3% to Rs 63.739 per KL in Delhi. After the cut, the ATF in Mumbai will cost Rs 64,730 per KL compared to Rs 65,650.27 per KL, it decreased by Rs 920 per liter.

The cut in ATF prices is expected to provide some relief to the domestic airlines, which accounts for 40% of an airlines’ operating cost. Currently, domestic airlines are suffering from the financial losses. The OMCs review ATF prices on 1st and 16th of every month, based on the average international price in the preceding fortnight.

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