Jet fuel prices slashed nearly 15%; airline stocks rise
New Delhi : In a relief to India's aviation industry, state-run oil marketing companies on Tuesday slashed jet fuel prices by around 15 per cent.
This is the second consecutive reduction in the prices of aviation turbine fuel (ATF) after around 10 per cent cut in December.
According to the Indian Oil Corporation, the latest reduction brought ATF price in Delhi to Rs 58,060.97 per kilolitre (1 kilolitre = 1,000 litre), 14.7 per cent lower than Rs 68,050.97 in December.
The steep cut in prices comes amidst the decline in crude oil prices for the last two months. The trend, however, may change in the months ahead as the production cut decision by the OPEC and non-OPEC countries takes effect from Tuesday.
In Kolkata, Mumbai and Chennai, ATF prices were reduced to Rs 63,556.18, Rs 58,017.33 and Rs 59,021.48 per kilolitre, respectively. In Kolkata, the price was down 13.4 per cent on a monthly basis, while in Mumbai and Chennai it was lower 14.7 per cent.
The stock prices of the three listed airlines -- Jet Airways, SpiceJet and IndiGo -- rose on Tuesday.
At the BSE, the stock of Jet Airways rose by Rs 3.40 or 1.22 per cent to Rs 281.05 from its corresponding previous close. The scrip of SpiceJet was up 1.18 per cent or Rs 1.05 to Rs 90.25 and IndiGo's shares ended higher by 0.05 per cent to Rs 1,166.35.