By IANS,
New Delhi : State-run oil companies Thursday cut aviation fuel prices by 4.3 percent following the government’s decision Wednesday to reduce customs duty on fuel to five percent.
According to an official, aviation turbine fuel (ATF) will cost Rs.66,226.66 per kilolitre in Delhi from Thursday. Earlier in May, the ATF prices in Delhi had been hiked to Rs.69,227.08 per kilolitre.
Similarly in Mumbai, the effective price of ATF would come down to Rs.68,626.87 per kilolitre from Rs.71,759.06, said an aviation ministry official here.
Domestic airfares shot-up after the oil companies hiked aviation fuel prices by around 19 percent May 31.
“The prices have been cut after the finance ministry reduced customs duty on ATF to five percent from 10 percent,” the official said.
Senior officials of various airlines met aviation ministry officials Wednesday and expressed their concern over the growing ATF prices.
Civil Aviation Minister Praful Patel has told them that they can prune their air services if ATF prices continue to go up.
With global oil prices sky-rocketing, the airlines have hiked fuel surcharge five times during the past five months, passing on the additional financial burden to the passengers.
In May, they raised the fuel surcharge on air tickets on short-haul flights to Rs.1,950 and to Rs.2,350 on long-haul flights, as the oil firms increased ATF prices.