State-owned oil firms on Thursday cut aviation turbine fuel (ATF) prices by over three per cent against easing international oil rates.

ATF rates in Delhi were cut by Rs. 1,390 per kilolitre, or 3.3 per cent, to Rs. 40,099 per kl with effect from midnight tonight, said an official of Indian Oil Corporation, the nation’s largest fuel retailer. The reduction in price negates the 3.2 per cent or Rs. 1,297 per kl hike in prices that oil firms had announced from July 1.

The basket of crude oil India buys averaged $72.80 a barrel in the first fortnight of July, based on which today’s cut in ATF price was decided, against $75.74 average of second half of June, he said.

Prices of ATF, which makes up for roughly 40 per cent of the operating cost of an airline, have risen on eight instances since March, with exception of two occasions — one of June 1 and the other today when rates were cut down.

Jet fuel in Delhi was priced at Rs. 37,982.22 per kl in the second half of February before international oil rates started firming up resulting in increase in domestic rates.

Today’s cut in fuel rates will ease the burden on Indian carriers, but no comments could immediately be obtained from airlines on the impact on passenger fares.

In Mumbai, the price of ATF was cut by Rs. 1,448 to Rs. 41,361 per kl.

IOC and its sister PSU fuel retailers, Hindustan Petroleum and Bharat Petroleum, revise jet fuel prices on the first and the 16th of every month, based on the average global oil price in the previous fortnight.