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Jet Air, Kingfisher fly higher as oil cos cut fuel prices
OMCs revised jet fuel price every fortnight based on the international market trends and on Jan 16, they had to hike the cost by 3% which made the commodity costlier for airlines by Rs 1805.44 per kilolitre
Shares of Jet Airways and Kingfisher Airlines climbed 5% and 4% after oil marketing companies slashed jet fuel price by over 3% as an appreciating rupee made crude imports cheaper for them.
While Jet was trading at Rs 259.50, Kingfisher also recouped some of its losses and was quoting at Rs 25.90 at 9:00 hours.
Indian Oil Corporation , Hindustan Petroleum and Bharat Petroleum have lowered the fuel cost as the rupee has appreciated to about Rs 49.50 against the dollar from Rs 53 in the Jan 15 ended fortnight.
OMCs revised jet fuel price every fortnight based on the international market trends and on Jan 16, they had to hike the cost by 3% which made the commodity costlier for airlines by Rs 1805.44 per kilolitre
However, with this reduction jet fuel in Mumbai will cost Rs 63,864 per kl from today, as against Rs 65,920.87 per kl.
Jet fuel constitutes about 35% of an airlines' operating cost and the reduction in prices will slightly ease the burden on cash-strapped airlines.
