Jet fuel prices were on Monday cut by a steep 5.5 per cent, reversing the rising trend of past two months.
Aviation Turbine Fuel, or ATF, price at T3 terminal in Delhi was cut by about Rs 3,885 per kilolitre (kl), or 5.5 per cent, to Rs 66,196 per kl from Monday, according to Indian Oil Corp, the nation's largest fuel retailer.
The reduction comes on back of a 2 per cent (Rs 1,324.84 per kl) increase in price from February 1 and a 3.8 per cent (Rs 2,519.83 per kl) hike in rates from March 1.
In Mumbai, jet fuel will cost Rs 68,332 per kl as against Rs 72,451.79 per kl previously.
Rates at different airports vary because of differential in local sales tax or value added tax.
Kolkata would see price cut of Rs 3,066 to Rs 76,172 per kl, while it will cost Rs 71,986 in Chennai as against Rs 76,239.44 per kl previously.
Jet fuel constitutes over 40 per cent of an airline's operating costs and the reduction in prices will ease the burden of the cash-strapped airlines.
No immediate comments were available from the airlines on the impact of the price reduction on passenger fares.
The three fuel retailers -- IOC, Hindustan Petroleum and Bharat Petroleum -- revise jet fuel prices on the 1st of every month, based on the average international price in the preceding month.