Aviation fuel prices cut by Rs 3,179

Jet fuel, or ATF prices for domestic airlines, which have to pay local sales tax, was cut by Rs 3,179.9 per kilo litre to Rs 37,123.92 per kilo litre in Delhi, an Indian Oil Corp official said.

In Mumbai, the prices were cut from Rs 45,837.72 per kilo litre to Rs 42,511.80 per kilo litre. The reduction in jet fuel or ATF prices comes into effect from midnight tonight.

For international airlines, which do not have to pay sales tax, ATF prices were cut by $53.62 per kilo litre to $621.68 per kilo litre in Delhi while in Mumbai they fell from $704.48 per kilo litre to $650.64 per kilo litre.

Public sector companies - Indian Oil Corp, Bharat Petroleum Corp Ltd and Hindustan Petroleum Corp Ltd - revise ATF prices on first of every month in line with movement in international prices.

In line with the softening in international prices, the oil firms had cut ATF prices by 8.3 per cent on October 1. The prices were on the upswing since April 2006 and were cut for the first time on October 1, the official said.

The crude oil prices are hovering at around $58 per barrel in both New York and London.