Oil companies slashed jet fuel, or aviation turbine fuel (ATF), price to Rs 1.08 lakh per kilolitre from Rs 1.17 lakh per kilolitre in Delhi for domestic airlines on India routes due to softening international oil prices. The change is effective from January 1. As per Indian Oil Corporation (IOC) data for the top four metro cities, jet fuel in Delhi is priced at Rs 108,138.77 per kilolitre and for Mumbai at Rs 107,084.11 per kiloliter. In Kolkata and Chennai, the price stands at Rs 115,008.08 and Rs 112,540.95 per kilolitre, respectively.
On December 1 last year, the price of jet fuel was cut by Rs 2,775 per kilolitre, or 2.3 percent, to Rs 1,17,587.64 per kiloliter in Delhi.
For domestic airlines on international routes, the ATF prices are as follows:
| Metros | Prices in Rs per kilolitre |
| Delhi | 999.05 |
| Kolkata | 1,036.31 |
| Mumbai | 995.29 |
| Chennai | 993.43 |
Source: IndianOil
The rate reduction will benefit airlines for whom fuel makes for almost 40 percent of the operating cost. Based on the average rate of international benchmark and foreign exchange rates, the ATF price is revised on the first of every month.
With the reduction in jet fuel, ticket prices might see some cooling off.
Meanwhile, oil prices rebounded on Thursday after opening the year down more than 9 percent, the worst yearly start in over three decades.
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