Jet fuel price cut by 4.2 per cent

In a relief to airlines, state oil marketing companies on Sunday reduced the jet fuel price by 4.2 per cent to Rs 47,206.68 per kilolitre from Sunday midnight.

This is the first time the price was reduced after five consecutive increases. Last month the price was hiked by 5.47 per cent to Rs 49,287.18 per kilolitre. Jet fuel is now up 18.3 per cent since January as compared to 23.5 per cent last month and will help airlines facing the pressure of a weakened rupee. While the price is up on a year-to-date basis, it is 1.7 per cent higher on a year-on-year (y-o-y) basis. In the March quarter, Jet Airways spent 19 per cent of its revenue on fuel, down from 26 per cent a year earlier, IndiGo spent 25 per cent, from 31 per cent earlier. The lower fuel costs have enabled airlines to keep fares low.