New Delhi: Aviation turbine fuel (ATF) prices were reduced by 1.4 per cent on Monday, reflecting a decline in global benchmark rates.
Jet fuel prices were lowered by Rs 1,308.41 per kilolitre to Rs 90,713.52 per kl in the national capital, which houses one of the country’s busiest airports, according to state-owned fuel retailers.
The reduction comes after two consecutive monthly hikes since July 1, during which ATF rates had risen by a steep Rs 8,949.38 per kl amid volatility in international crude markets triggered by geopolitical tensions and trade disputes.
The latest cut is expected to ease pressure on commercial airlines, as fuel accounts for nearly 40 per cent of their operating costs. No immediate comments were available from airlines on the impact of the move.
In Mumbai, ATF rates were revised down to Rs 84,832.83 per kl from Rs 86,077.14. Prices in Chennai and Kolkata, however, increased to Rs 94,151.96 and Rs 93,886.18 per kl, respectively.
Rates vary across states, depending on local taxes such as VAT.
State-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) revise ATF and cooking gas prices on the first of every month, based on the average international benchmark fuel price and foreign exchange rates.
Domestic petrol and diesel prices, however, continue to remain frozen. Petrol is priced at Rs 94.72 per litre in Delhi, while diesel costs
Rs 87.62.