State-owned oil companies for the second time in the month of April reduced jet fuel prices by a marginal Rs 312 per kilolitre or kl on 30 April 2012. The price of aviation turbine fuel (ATF), or jet fuel, in the reduction was announced in the wake of a Rs 169.3 per kl cut in rates effected from 16 April 2012.
The reductions are however overshadowed by the steep increases effected in March and early April 2012. ATF rates were increased by 3.2 per cent on 1 March 2012, Rs 1298.88 per kl on 16 March 2012 and by another 2.8 per cent on 1 April 2012. Prior to being increased thrice in the months of March and April, jet fuel was priced at Rs 62,557.12 per kl.
Delhi was reduced by Rs 311.74 per kl, or 0.46 per cent, to Rs 67319.71. In Mumbai, jet fuel is to cost Rs 68,306.21 per kl as against Rs 68630.93 per kl now.
Jet fuel constitutes over 40 per cent of an airline’s operating cost and the marginal reduction in prices introduced on 30 April 2012 is expected to take the burden off the cash-strapped airlines.
The three fuel retailers — IOC, Hindustan Petroleum and Bharat Petroleum revise jet fuel prices on the 1st and 16th of every month, based on the average international price in the preceding fortnight.
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