Oil companies cut jet fuel prices

For the second time in one month, state-owned oil firms on Thursdaycut jet fuel, or ATF , price in line with softening of rates in theinternational markets.

Aviation Turbine Fuel (ATF) price at Delhi's T3 airport was cut by Rs 429 perkilolitre (kl), or 0.75 per cent, to Rs 56,260 per kl from today, an officialof Indian Oil Corp, the nation's largest fuel retailer, said.

The companies had from August 16 cut jet fuel rates by Rs1,156 per kl or about 2 per cent.

Jet fuel makes up for 40 per cent of an airlines' operatingcost.

ATF in Mumbai, home to the nation's busiest airport, willcost Rs 446 per kl less at Rs 56,978 per kl from today as against the old priceof Rs 57,424 per kl.

No comment could be immediately obtained from airlines onthe impact of the price reduction on passenger fares.

ATF prices vary from airport to airport, depending on thelocal sales tax or VAT.

IOC and its sister public sector retailers, HindustanPetroleum Corp (HPCL) and Bharat Petroleum Corp (BPCL), revise jet fuel priceson the 1st and 16th of every month, based on the average international price inthe preceding fortnight.