ATF prices cut again, but fall in air fares uncertain

Cash-strapped airlines on Monday got another breather when state-run oil firms further cut jet fuel prices but they remained non-committal on slashing fares.

State-run oil firms cut jet fuel prices on Monday by up to Rs 2,100 per kilolitre on top of the 17 per cent reduction announced last week.

Jet fuel, or aviation turbine fuel, at Delhi will cost Rs 44,965.70 per kl with effect from midnight tonight, a four per cent cut over the present Rs 47,017.93 per kl, an industry official said.

The reduction, which comes on top of 17 per cent cut of November 1, followed Government exempting the fuel from payment of 5 per cent customs or import duty.

Airlines, however, did not immediately say if the overall 20 per cent reduction (Rs 11,482.10 per kl) in jet fuel prices in three days will result in lowering of fares. Some of the airlines said they were “studying” the impact.

They had reacted the same when Indian Oil, Bharat Petroleum and Hindustan Petroleum had from November 1 cut ATF price in Delhi by Rs 9,429.87 per kl to Rs 47,017.93 per kl, in line with fall in international oil prices.
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