Aviation turbine fuel (ATF) prices were reduced by 1.4% on Monday. The reduction in price comes after two straight months of hike. In August the price was hiked by Rs 2,677.88 per kilolitre, or 2.9%, to Rs 92,021.93 per kl.
The jet fuel price was decreased by Rs 1,308.41 per kilolitre, or 1.4%, to Rs 90,713.52 per kl in the national capital, according to state-owned fuel retailers.
The decrease comes after a steep 10.5% hike in July and August combined, adding to the operating cost of airlines.
ATF prices were also slashed across major Indian cities, with Kolkata recording a rate of Rs 93,886.18 per kilolitre, Chennai slightly higher at Rs 94,151.96 per kilolitre, and Mumbai offering the lowest at Rs 84,832.83 per kilolitre.
The hike in July came after three monthly reductions starting April. In all, prices had been cut Rs 12,239.17 per kl in the three reductions. The subsequent increases wiped away almost three-fourths of the gains.
The decrease in ATF price is in line with the fall in international oil rates that followed geopolitical tensions and trade wars.
This decrease will aid the commercial airlines, for whom fuel makes up for almost 40% of the operating cost.
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