After six consecutive increases, state-owned oil retailers on Monday slashed price of jet fuel, or ATF, by over seven per cent, a move that will cut fuel bill of airlines.

Aviation turbine fuel (ATF) rates in Delhi have been reduced by Rs. 3,052, or 7.17 per cent, to Rs. 39,504 per kl effective midnight tonight, an official of Indian Oil Corp (IOC), the nation’s largest oil firm, said.

The reduction follows more than a $10 per barrel drop in international crude prices to around $72-73 per barrel.

Today’s rate cut has wiped away most of the six consecutive hikes in jet fuel prices since March 1.

ATF in Delhi was priced at Rs. 37,982.22 per kl in the second half of February before a spurt in international rates prompted rate hikes in every fortnight subsequently. Jet fuel prices had risen by 12 per cent in six installments since March 1.

Jet fuel constitutes roughly 40 per cent of the operating cost of an airline and today’s reduction in fuel rates would ease the burden on Indian carriers.

No immediate comments could be obtained from airlines on the price reduction and if would be passed on to passengers.

In Mumbai, the price of ATF was cut by Rs. 3,180 to Rs. 40,752 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.