Public sector oil marketing companies (OMCs) have cut aviation turbine fuel prices (ATF) by a steep five per cent, giving relief to the beleaguered airline industry. This is the steepest reduction in rates since February 2010. It is also the fifth straight cut in jet fuel rates since mid-April.
OMCs revise ATF prices after every 15 days. However, whether the airlines will pass on benefit to the customers is not clear, according to a report by The Asian Age.
OMCs announced a cut in ATF prices even when they took no decision on a petrol price cut, which was expected to be announced yesterday. Due to a fall in the international prices of crude oil, it was believed that the OMCs will go for a price cut in petrol prices.
The price of Indian basket of crude oil on Friday was USD 95.97 per barrel. After the cut, ATF prices have come down to November 2011 levels after hitting a high of Rs 67,800.3 per kl on April 1, 2012. Jet fuel had hit an all-time high peak of Rs 71,028.26 per kl in August 2008, shortly after international oil rates touched a record USD 147 per barrel.Click here to see the original article>