The oil marketing companies run by the state on June 15, slashed the prices of jet fuel by about 5%, in line with the International markets. But the oil companies have decided to watch the movement of the rupee before any decision is taken before reducing the petrol price.

The price of jet fuel has been reduced by Rs. 3,260 per kilolitre to Rs. 62,410 per KL in the Terminal 3 in Delhi airport. This has been the steepest cut since the month of February 2010 and is likely to bring some relief to the financially troubled airline.

The fuel accounts for 40% of the airline’s operating costs. On the other hand the consumers of petrol will have to wait before they see their monitoring bills comes down. There are two major companies for the oil companies to decide against going for a cut on Jun 15, despite the fact that there is a scope for a reduction of Rs. 1.60 per litre.

The first reason is that the retailers are trying to break the fortnightly cycle as well as the market speculation surrounding it at present. The next reason is the rupee on which the prices of petrol is also decided.