Jet fuel prices were cut by a record 14.7 percent on Tuesday making it cheaper than petrol and diesel. Rates of Aviation Turbine Fuel (ATF) that is used to power airplanes was reduced by Rs 9,990 per kilolitre or 14.7 percent to be priced at Rs 58,060.97 per kilolitre, as per a notification by state-owned oil retailer IOC.

This has been the second monthly price cut on ATF and biggest single price reduction ever. On 1 December 2018, the prices were cut by 10.9 percent or Rs Rs 8,327.83 per kilolitre. The reduction is reflective of the fall in international crude prices and brings ATF rates to their lowest in a year. This is good news for the airline industry where most carriers suffered losses in 2018 mainly due to high fuel prices and the fall in the rupee valuation.

The cut has also made ATF cheaper than petrol and diesel sold in most Indian cities. A litre of petrol in Delhi costs Rs 68.65 whereas a litre of ATF is only Rs 58.06 per litre. It is even cheaper than diesel which is priced at Rs 62.66 per litre.

In Mumbai, which houses the busiest airport in the country, ATF per litre costs Rs 58.01 per litre, while petrol costs Rs 74.30 per litre. In fact, even non-PDS kerosene in the city is costlier at Rs 59.53 a litre. Diesel in Mumbai is priced at Rs 65.56 per litre.