According to some reports, the oil companies in India have reduced the price of aviation turbine fuel (ATF) by as much as Rs. 1,974 per kilolitre or 3.02 per cent to the level of Rs 62,908 per kl, bringing some relief to the cash-strapped aviation firms in the country.

Indian Oil Corporation , Hindustan Petroleum and Bharat Petroleum have decided to reduce the prices of jet fuel as the Indian rupee appreciated against the US dollar to Rs 49.50 from around Rs 53 in the fortnight till 15 January. The appreciation of the rupee ahs made it cheaper for the oil companies to import fuel from international markets.

The oil companies revise fuel price every fortnight after considering the international prices. They had increased the prices by 3% on 16 January that resulted in an increase of Rs 1805.44 per kilolitre for the airline.

Following the reports of a price cut, the aviation shares surged in the domestic share markets. Jet Airways rose 4.73 per cent, Kingfisher Airlines increased 4.45 per cent and Spicejet gained 5.20 per cent on the Bomaby Stock Exchange (BSE).