New Delhi: For the second time this month, state-owned oil companies on Saturday cut jet fuel (ATF) price by over one percent in step with softening in the commodity's international rates.

The price of aviation turbine fuel (ATF), or jet fuel, in Delhi was cut by Rs 622 per kilolitre (kl), or 1.03 percent, to Rs 63,077 per kl with effect from Saturday midnight, an official at Indian Oil Corp said.

IOC and other fuel retailers, Hindustan Petroleum and Bharat Petroleum had on December 16 reduced ATF price by 1.3 percent to Rs 63,739.10 per kl.

Jet fuel in Mumbai will cost Rs 64,054 per kl from Sunday as against current rate of Rs 64730.23 per kl, a decrease of over Rs 676 per kl.

The reductions this month comes on back of a steep 3.7 percent hike in rates effected from December 1. Prior to that, ATF rates had been increased by Rs 1,195 per kl from November 16 and by 3.8 percent or Rs 2,845 per kl from November 1.

The official said the reduction was possible because fall in international jet fuel prices has offset weakening of the rupee against the US dollar.

Jet fuel makes up for 40 percent of an airlines' operating cost and the marginal cut in prices will slightly ease burden on the cash-strapped airlines. No immediate comment was available from airlines on the impact of the price reduction on passenger fares.

The three fuel retailers revise jet fuel prices on the 1st and 16th of every month, based on the average international price in the preceding fortnight.

(Agencies)