Jet fuel price cut by Rs.1,974 a kilolitreJanuary 31st, 2012 - 9:09 pm ICT by IANS
New Delhi, Jan 31 (IANS) State-owned oil marketing companies (OMCs) Tuesday cut aviation fuel prices by Rs.1,974.29 or 3.04 percent a kilolitre (kl), effective from midnight Wednesday, as an appreciating rupee against the dollar made imports cheaper.
With this, the price of air turbine fuel (ATF) at Delhi’s Indira Gandhi International Airport will come down from Rs.64,882.11 to Rs.62,907.82 a kl.
Just a fortnight ago, Indian Oil, Bharat Petroleum and Hindustan Petroleum had raised the price by 2.86 percent or Rs.1,805.44 per kl.
The rupee appreciated to Rs.49.50 per dollar from over Rs.52 per dollar a fortnight ago.
The latest cut is expected to reduce the burden on the aviation industry, with many airlines incurring losses due to the high cost of jet fuel.
“Any reduction in ATF prices is a welcome step. But there is still a long way to go in rationalizing our domestic ATF prices which are nearly 50-60 percent higher than that in our competing markets like Middle East and Southeast Asia,” Amber Dubey, director, aviation, at consultancy firm KPMG told IANS.
The ATF price accounts for nearly 50 percent of the operating cost of an airline. Jet fuel prices also vary from state to state which levy sales tax on the ATF in the region of 3 to 35 percent.
The OMCs revise ATF prices on every 1st and 16th of the month based on the average international crude oil price during the fortnight.
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- Jet fuel price cut by Rs.622 a kilolitre - Dec 31, 2011
- Jet fuel price hiked by 4.5 percent - Aug 01, 2012
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- Government approves direct jet fuel import, Air India debt plan (Lead) - Feb 07, 2012
- Government rolls out plan to help domestic airlines (Roundup) - Feb 07, 2012
- Aviation stocks rally after direct jet fuel import allowed - Feb 07, 2012
- Oil firms cut jet fuel prices by 1.38 percent (Lead) - Dec 15, 2011
- Oil firms increase jet fuel price by two percent - Nov 15, 2011
- Oil firms increase jet fuel price by 3.70 percent - Nov 30, 2011
- Jet fuel prices down, but no respite to passengers - May 16, 2011
- Air India yet to decide on direct ATF import: Ajit Singh - Aug 28, 2012
- Indian Oil Corporation raises jet fuel prices by 4.5 percent - Jan 31, 2011
- Airlines should tie-up with suppliers to import jet fuel - Feb 16, 2012
- Hike in jet fuel price to jack up air fares: Patel - Jan 17, 2011
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