In an attempt to cut the fuel bill of airlines, the state-owned oil firms, Indian Oil Corporation Limited (IOCL), Hindustan Petroleum Corporation Limited (HPCL) and Bharat Petroleum Corporation Limited (BPCL) have decided to reduce Aviation Turbine Fuel (ATF) prices, by over 7 per cent.
ATF rates in Delhi have been reduced by Rs 3,052 to Rs 39,504 per kilolitre and in Mumbai; the price of ATF was cut by Rs 3,180 to Rs 40,752 per kilolitre. This reduction has wiped away most of the 6 consecutive hikes in jet fuel prices since March 1. Jet fuel constitutes 40 per cent of the operating cost of an airline and this recent reduction in fuel rates would ease the burden on Indian carriers.
