Ahead of Union Finance Minister Nirmala Sitharaman’s Budget 2024 speech, state-backed oil marketing companies (OMCs) like Indian Oil Corporation (IOC) on Thursday slashed jet fuel (ATF) prices ) for domestic airlines in Delhi. ATF or jet fuel prices were reduced by Rs 1,221/kl in Delhi on February 1.
After the latest revision, jet fuel for domestic airlines costs Rs 1,00,772.17 per kl in Delhi; Rs 1,09,797.33 per kl in Kolkata; Rs 94,2476 per kl in Mumbai and Rs 1,04,840.19 per kl in Chennai. Jet fuel for domestic airlines on international flights costs $912.76 per kl in Delhi; $950.88 per kl in Kolkata; $910.84 per kl in Mumbai; and $907.88 per kl in Chennai.
This was not the first time jet fuel or ATF prices were reduced, however. In January this year, jet fuel prices were reduced by 4 percent. According to a notification from state-owned fuel retailers, the price of jet fuel (ATF) has been reduced by Rs 4,162.50 in the national capital to Rs 1,01,993.17 per kl.
Meanwhile, the price of commercial LPG used by establishments such as hotels and restaurants was increased to Rs 1,796.50 per 19 kg cylinder from Rs 1,775.50.
Prior to this, the ATF price was reduced by around 6 per cent, or Rs 6,854.25 per kl, in November and by 4.6 per cent, or Rs 5,189.25 per kl, in December. Reducing the price of jet fuel, which accounts for 40 percent of an airline’s operating costs, will ease the burden on already struggling airlines.
State-backed oil marketing companies revise cooking gas and ATF prices on the first of each month taking into account the average international price of the previous month.
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