Jet fuel price cut by 4.2 per cent

In a relief to airlines, state oil marketing companies on Sunday reduced the jet fuel price by 4.2 per cent to ~47,206.68 per kilolitre from Sunday midnight.

This is the first time the price was reduced after five consecutive increases. Last month the price was hiked by 5.47 per cent to ~49,287.18 per kilolitre. Jet fuel is now up 18.3 per cent since January as compared to 23.5 per cent last month and will help airlines facing the pressure of a weakened rupee. While the price is up on a year-to-date basis, it is 1.7 per cent higher on a year-on-year (yo-y) basis. In the March quarter, Jet Airways spent 19 per cent of its revenue on fuel, down from 26 per cent a year earlier, IndiGo spent 25 per cent, from 31 per cent earlier. The lower fuel costs have enabled airlines to keep fares low.