With declining crude oil prices, OMCs reduce jet fuel rates by 11% in Delhi

State-owned oil marketing companies (OMCs) on Saturday reduced the aviation turbine fuel (ATF), or jet fuel, prices by 10.90 per cent in New Delhi.

Accordingly, jet fuel prices have been cut by Rs 8,327.83 in Delhi and now sells at Rs 68,050.97 per kilolitre. Prices vary with airports depending on local taxes.

Jet fuel per kilolitre now costs Rs 73,393.55 in Kolkata, Rs 67,979.58 in Mumbai and Rs 69,216.61 in Chennai.

The three OMCs revise the jet fuel prices on the first of every month.

Earlier this week, credit ratings agency ICRA said severely mauled by the twin blows of a significant increase in ATF prices and the depreciation of INR against the US dollar, the Indian aviation industry continues to grapple with tough times in the current financial year.

"As if this was not enough, low pricing power of the industry and inability to raise fares has resulted in mounting losses for the airlines," the agency had said.

The reduction falls in line with the declining crude oil prices which has lost one-third of value in the span of two months, after touching a $86-a-barrel mark in early October.

Brent crude oil has slipped below $60 following the US decision to exempt 8 countries, including India and China, to continue buying oil for six months from Iran despite sanctions.

However, the global prices remain volatile ahead of OPEC meeting next week which could further affect ATF prices.