New Delhi: Due to the reduction in crude oil prices, the prices of air fuel have been reduced. The cost of aviation turbine fuel has also been cut by 0.7 percent. Government oil companies have given information about reduction in the prices of air fuel. It is believed that airlines will benefit from the reduction in ATF prices, which may have an impact on airfares. ATF prices have been cut for the fourth time this year.
Know the new prices of ATF in Delhi
In the capital Delhi, the price of ATF has come down to Rs 1,21,041.22 per kiloliter. It has been cut by Rs 874 per kiloliter. The price of ATF in Kolkata has come down to Rs 1,27,523.33. The price of ATF in Mumbai has come down to Rs 1,20,001.74. In Chennai, the price of ATF has come down to Rs 1,25,589.88 per kiloliter. Let us tell you that in May 2022, the prices of aviation turbine fuel had reached a record high and they went to Rs 1,41,232.87 per kiloliter.
What will be the effect
The reduction in the price of ATF will reduce the operating cost of airline companies. Airlines have got the right to fix air fares for domestic routes from today. Till now the government was fixing the lower and upper limit of the domestic air travel fare. It is believed that airlines can give the benefit of this deduction to the passengers in the form of cheap air travel. Let us tell that ATF accounts for 60 percent of the operational cost of an airline’s aviation company.