Jet fuel price cut by 14%

It’s now cheaper to refuel a plane than a car, with state-run oil retailers cutting the price of jet fuel for the second straight month, this time by 14.7% to ₹58,060.97 per kilolitre —a move that is widely expected to help airlines recover from the losses they have piled up in the past seven to eight months, mostly due to high fuel costs and a falling rupee.

The January 1 cut comes after a 10.9% reduction on December 1. Before that, aviation turbine fuel was priced at ₹76,378.80 a kl.

Fuel accounts for 40% of the cost for airlines and in recent months, oil-market volatility and a steep fall in the value of the rupee against the dollar have left many carriers bleeding.

An expert said he doesn’t expect airlines to lower ticket prices immediately, though.

ATF prices vary from city to city depending on local taxes. State-run refiners, which enjoy a dominant position in domestic fuel retail, revise ATF rates every month. Tuesday’s cut made jet fuel cheaper than both petrol and diesel in most large cities. In Delhi, petrol costs ₹68.65 a litre or ₹68,650 a kl and diesel ₹62.66 a litre or ₹62,660 a kl.

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