ATF prices cut, airfares likely to be slashed yet again

New Delhi: State-owned oil companies have cut aviation turbine fuel (ATF) prices by 6.8 per cent.

The cut in ATF price is the eighth straight reduction since August and will be effective from the midnight of December 31-January 1.

The prices have been reduced by Rs 2,234 in Delhi bringing it down to Rs 30,457.21 per kilolitre while in Mumbai the cut is around Rs 2340 bringing the price down to 31,378.78 per kilolitre.

ARF prices reached an all-time high of Rs 71,028 in August when crude shot to the $147 a barrel mark.

The fuel prices are currently at July 2005 levels and many airlines have slashed thier fares following a reduction in input costs. ATF constitutes 40 per cent of the running cost of airlines.

Since last month, Indian Oil, Bharat Petroleum and Hindustan Petroleum have been revising ATF prices twice a month - on the 1st and 16th - based on the average imported price in the preceding fortnight.

The three firms had in December cut jet fuel prices on an average by Rs 2,480 per kl and then by 11 per cent or Rs 4,208 per kilolitre.