Jet fuel price reduced by 11.7%, sharpest cut in six months

In Delhi, jet fuel price reduced to Rs 40,938 per kilolitre from Sept 1 from Rs 46,407 a month earlier

In a major relief to domestic airlines, state oil marketing companies cut the price of jet fuel by 11.7%.

This is the sharpest cut in the jet fuel price in the last six months and second highest in a year following a sustained decline in crude oil price

In Delhi, the jet fuel price has reduced to Rs 40,938 per kilolitre from September 1 from Rs 46,407 a month earlier. Prices in other markets vary due to differences in sales tax on jet fuel.

On an year-on-year basis the price of jet fuel in domestic market is down over 41%. Last September, jet fuel was priced at Rs 69,603 per kilolitre in Delhi.

 

Analysts say falling oil prices coupled with demand recovery are a positive for Indian airlines. While the drop in prices results in reduction in operating costs the price decline has also given airlines a cushion to drop fares to stimulate demand.