With a fall in international prices of crude, state-run oil companies Wednesday slashed aviation fuel prices by almost 6 percent. The new prices will be effective Wednesday night and come after four consecutive hikes.
Aviation fuel will now cost Rs.2,220 less per kilolitre. In Delhi, it will cost at Rs.36,338 a kilolitre, and in Mumbai Rs.37,475 a kilolitre.
However, air fares are unlikely to come down, according to an airline official.
The three state-owned oil companies - Indian Oil Corp, Bharat Petroleum and Hindustan Petroleum - last raised prices July 1 by Rs.2,307 per kilolitre.
Aviation fuel prices are revised every fortnight according to the crude prices prevailing in the international markets.
US crude oil for August delivery had fallen 20 cents Monday to $59.69 a barrel, after earlier touching a new low of $58.32, the lowest since May 18 this year.
Aviation fuel prices in India rose to their peak last August at Rs.71,028 per kilolitre in Delhi when international crude prices peaked to a record high of $147 a barrel.
Fuel expenditure constitutes a major chunk of an airline's operational costs, about 35 percent.