Oil firms cut jet fuel prices by 2.5 percent

February 15th, 2010 - 8:38 pm ICT by IANS  

New Delhi, Feb 15 (IANS) State-run oil companies Monday cut jet fuel prices by 2.5 percent after drop in international crude prices which earlier rose to $82-84 per barrel.
Jet fuel in Delhi will now cost Rs.37,982 per kilolitre, a cut of Rs.974, while in Mumbai, it will be priced at Rs.39,167 per kilolitre, which is Rs.1,015 per kilolitre lower than present.

The new rates will be effective from midnight, an Indian Oil Corporation official said.

The cut in rates of Aviation Turbine Fuel (ATF), also called jet fuel, is the second such reduction during this month with prices cut by as much as 5.5 percent Feb 1 to Rs.38,956 per kilolitre.

Airlines which had raised fares after hike in aviation fuel price till recently are unlikely to cut down their fares as the industry is gradually picking up on passenger loads.

The rates of aviation fuel which are fixed on the global trend of crude rates in the previous fortnight are now at par with those prevalent in October 2009.

Jet fuel, which constitutes 35 to 40 percent of a carrier’s operational costs, had reached Rs.71,028.26 per kilolitre in August 2008 when international crude oil prices touched $147 per barrel (159 litres).

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