In the latest fortnightly revision of aviation turbine fuel by public sector oil companies,the prices have been slashed by 3.7 per cent,the tenth such reduction since September,barring the Jan 16 revision when the prices were raised marginally. Aviation Turbine Fuel (ATF) prices in Delhi were slashed to Rs 29,158 per kilolitre,effective midnight tonight,Indian Oil Corp,the nation’s largest fuel retailer,said. The fuel used by airlines till today was priced at Rs 30,288 per kilolitre. After todays Rs 1,130 a kilolitre reduction,jet fuel is priced at early 2005 levels.
Despite consistent fall in ATF prices,the airlines,including the state carrier Air India had arbitrarily increased the airfares in second week of February. Some of the low-cost airlines had also raised the fuel surcharge by as much as Rs 800 for flights covering a distance of more than 750 kilometre. ATF forms 30-40 per cent of total operating costs of an airline. For the 3.3 per cent increase in rates on January 16,jet fuel prices have been reduced for the tenth time today since September 1,2008,when international crude oil prices started to decline.
In Mumbai,home to the nations busiest airport,ATF rates were down by Rs 1,191 per kl to Rs 29,985 per kl today. ATF prices had peaked to Rs 71,028.26 per kl in Delhi in August when international crude prices touched a high of $147 a barrel. But they have since been slashed every month till October and twice in November.
State-run Indian Oil Corp,Hindustan Petroleum and Bharat Petroleum revise ATF rates on the 1st and 16th of every month based on the average international jet fuel rates in the preceding fortnight. This special arrangement will continue till March this year.