NEW DELHI: In a relief to airlines, oil marketing companies on Saturday reduced the aviation turbine fuel (ATF) by Rs 3,084.94 to Rs 138,147.93 per kl in Delhi, in response to the fall in international prices.
This is the second reduction in rates this year with the earlier price cut being effected on June 1 by Rs 1,563.97 per kl. Before that, rates were hiked by Rs 6,188.25 per kl on May 16 to Rs 1,23,039.71 per kl. ATF prices had peaked to Rs 141,232.87 per kl last month after an increase of a whopping Rs 19,757 per kl on June 16.
The latest cut comes as a big respite for the airlines industry, for which fuel accounts for 40% of its operational cost. In the past one year, ATF prices have more than doubled from Rs 68,262 a unit to Rs 138,148.
The aviation fuel prices are revised on the first and the 16th of every month based on rates of benchmark international oil rates in the previous fortnight. In all, rates have been increased 11 times since the start of the year. This has led to rates nearly doubling in six months.
The latest price cut is due to the drop in international crude oil prices. International oil prices have softened on fears of recession in major economies.The Brent Crude prices have cooled down from the peak of $124 barrel in June to $101on 16 July.