New Delhi: The government on Wednesday slashed jet fuel prices by 4 percent following a slim reduction in international oil prices. Aviation Turbine Fuel (ATF) price was cut by Rs 4,606.50 per kilolitre to Rs 1,07,750.27 per kilolitre in Delhi. ATF will cost Rs 1,15,091.33 per kl in Kolkata. It will cost Rs 1,06,695.61 in Mumbai and Rs 1,12,497.99 in Chennai.
This comes after an increase in ATF price in February to ₹1,12,356.77 per kilolitre in the national capital. According to standard practice, the ATF price is revised on the 1st of every month. The calculations are drawn from the average of international benchmark rates and foreign exchange rates. This is expected to give a boost to the aviation industry which has started recording profits following the long slump owing to the pandemic and high ATF price. Fuel prices comprise nearly 40 percent of its operating cost.
Also read: Air India to acquire 250 aircraft from Airbus; PM Modi calls it 'landmark event'
Recently Tata-owned Air India, in one of the largest orders placed by any airline, announced the acquisition of 470 passenger aircraft from French Airbus and American Boeing. It has ordered 840 planes from Airbus and Boeing which also include 370 optional buys. Other domestic carriers are also expected to make similar announcements in order to compete.
Recently IndiGo, the country's largest airline announced that it would be starting flights to Nairobi, Jakarta and some central Asian countries. Indigo chief Pieter Elbers said that Indigo will focus on 'internationalisation'.
Airline growth in India has been propelled owing to a rise in demand for air travel after the pandemic. This has necessitated the development of a robust ecosystem and government policies that support its growth.
In another development Oil Marketing Companies (OMCs) Wednesday hiked domestic cylinder prices by Rs 50 and commercial cylinder prices by Rs 350. The price revision is learnt to have been effective immediately.
