The price of jet fuel, or ATF, was reduced by 4.4% on Thursday -- marking the second major cut within a month.
Additionally, the price of commercial LPG used in hotels and restaurants was lowered by Rs 14.50 per cylinder, in line with international benchmarks.
The Aviation Turbine Fuel price was reduced by Rs 3,954.38 per kilolitre, or 4.4%, to Rs 85,486.80 per kl in the national capital - home to one of the busiest airports in the country, according to state-owned fuel retailers.
The price cut follows a steep 6.15% (Rs 5,870.54 per kl) reduction effected on April 1. These two reductions have effectively offset the price increases that occurred earlier this year.
The ATF price in Mumbai was cut to Rs 79,855.59 per kl from Rs 83,575.42, while those in Chennai and Kolkata were reduced to Rs 88,494.52 and Rs 88,237.05 per kl, respectively.
Oil firms also reduced the price of commercial LPG by Rs 14.50 per 19-kg cylinder. Commercial LPG now costs Rs 1,747.50 in the national capital and Rs 1,699 in Mumbai.
The reduction follows a Rs 41 per cylinder cut in rates effected on April 1.
International oil prices have softened in the last couple of weeks as global trade war eroded the outlook for fuel demand. Brent - the most quoted international benchmark - was trading below $61 per barrel - the lowest in over three years.
Prices of ATF and LPG differ from state to state depending on the incidence of local taxes, including VAT.
The rate of cooking gas used in domestic households, however, remained unchanged at Rs 853 per 14.2-kg cylinder. The price of the domestic LPG was hiked by Rs 50 per cylinder last month.
State-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd, and Hindustan Petroleum Corporation Ltd. revise prices of ATF and cooking gas on the first of every month based on the average price of benchmark international fuel and foreign exchange rate.
While international oil prices have softened, domestic rates of petrol and diesel continue to remain frozen. Rates were cut by Rs 2 per litre in mid-March last year, ahead of the general elections. Petrol costs Rs 94.72 a litre in Delhi, while diesel is priced at Rs 87.62.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
