Jet Fuel Prices Cut By 14.7% In Biggest Reduction Ever

  NEW DELHI: Jet fuel price was cut on Tuesday by a record 14.7 per cent on the back of decline in international rates, making it cheaper than both petrol and diesel. The price of Aviation Turbine Fuel (ATF) -- used to power airplanes --  was slashed by Rs. 9,990 per kilolitre, or 14.7 per cent, to Rs. 58,060.97 per kl, according to price notification issued by state-owned oil firms. This is the second straight monthly reduction in rates and the biggest single cut ever. Prices were slashed by Rs. 8,327.83 per kl, or 10.9 per cent, on December 1.

The two consecutive price reduction has brought ATF rates to their lowest levels in a year and will provide much-needed relief to cash-strapped airlines.

Rates are now cheaper than both petrol and diesel in most parts of the country and it is less expensive than even non-PDS kerosene in cities like Mumbai.

A litre of petrol, used in motorcycles and cars, costs Rs. 68.65 in Delhi as compared to Rs.58,060.97 per kl or Rs. 58.06 per litre price for ATF. A litre of diesel, which is mostly used as fuel in trucks and buses, comes for Rs. 62.66.

ATF costs just a shade higher than the price charged for kerosene sold through non-PDS (public distribution system) outlets in Delhi. Non-PDS in Delhi is priced at Rs. 56.59 per litre.

ATF in Mumbai, home to one of the busiest airport in the country, costs Rs. 58,017.33 per kl or Rs. 58.01 per litre. A litre of petrol in the city costs Rs. 74.30 and diesel is priced at Rs. 65.56 per litre. It costs less than even non-PDS kerosene in the city which is sold at Rs. 59.53 a litre.

Rates vary from city to city depending on local taxes.

Continuing its downward march, petrol price Tuesday was cut by 19 paise a litre and diesel rates were reduced by 20 paise.

Petrol now costs Rs. 68.65 a litre in Delhi and diesel is priced at Rs. 62.66.

Rates have been on the decline since October 18 and cumulatively prices have been cut by Rs. 14.18 per litre in case of petrol and Rs. 13.03 a litre for diesel.

State-owned fuel retailers revise rates of ATF on 1st of every month based on average international oil rate and rupee-US dollar exchange rate in the preceding month. Petrol and diesel prices are revised on a daily basis.