After six consecutive increases, state-owned oil firms, Indian Oil Corporation Limited (IOCL), Hindustan Petroleum Corporation Limited (HPCL) and Bharat Petroleum Corporation Limited (BPCL), have reduced Aviation Turbine Fuel (ATF) prices, by over seven per cent, a move that will cut fuel bill of airlines.

ATF rates in Delhi have been reduced by Rs 3,052, or 7.17 per cent, to Rs 39,504 per kilolitre. While in Mumbai, the price of ATF was cut by Rs 3,180 to Rs 40,752 per kilolitre. The reduction follows more than USD ten per barrel drop in international crude prices to around USD 72-73 per barrel. This reduction has wiped away most of the six consecutive hikes in jet fuel prices since March 1, 2010.

Jet fuel in Delhi was priced at Rs 37,982.22 per kilolitre in the second half of February this year before a spurt in international rates prompted rate hikes every fortnight subsequently. Jet fuel prices had risen by 12 per cent in six installments since March 1, 2010.