New Delhi, May 1
Public sector oil companies on Thursday slashed the price of commercial LPG by Rs 14.50 per 19-kg cylinder while the price of jet fuel for airlines was cut by 4.4 per cent.
The price of Aviation Turbine Fuel (ATF) was reduced by around Rs 3,954.38 per kilolitre (1,000 litres) to Rs 85,486.80 per kl, which will come as a shot in the arm for commercial airlines such as Air India and IndiGo as fuel accounts for around 30 per cent of their operational costs.
The price cut follows a steep 6.15 per cent (Rs 5,870.54 per kl) reduction effected on April 1. These two reductions have effectively offset the price increases that occurred earlier this year.
The reduction in fuel prices comes against the backdrop of crude oil prices having fallen to a four-year low in the global market with the benchmark Brent crude hovering at around to $63 a barrel, the lowest since April 2021.
Oil prices have declined as demand has declined amid the global slowdown. Oil prices have slumped as demand has declined amid the global slowdown. Saudi Arabia, one of the world's biggest oil producers, has also indicated that it won’t shore up oil prices with any more supply cuts as it is ready to face a prolonged period of low prices. This is expected to come in the way of the OPEC oil cartel from influencing prices.