From today, ATF in Delhi will cost Rs 66,226.66 per kilo litre, down Rs 3,000.42 per kl, while in Mumbai the price has been cut by 4.36 per cent to Rs 68,626.87 per kl, an Indian Oil official said.
The prices have been cut after the Finance Ministry reduced customs duty on ATF to five per cent from 10 per cent previously.
However, airline officials in private admit that there would not be any reduction in the fuel surcharge at all.
"The hike that we effect in fuel surcharge following a hike in ATF price is just marginal and does not offset our losses," a private carrier's official said.
"The fuel cost of our airline now constitutes almost 50 per cent of our total operating cost, so the question of reducing the fuel surcharge does not arise," he said.
Major oil companies had recently announced an 18.5 per cent hike in ATF prices, following which major air-carriers including state-run Air India had upped their air-fares by raising fuel surcharge by Rs 300-550 across sectors.
India's airlines suffer Rs 4,000 cr loss in FY08
Inflation: The silent killer!
Airfares to rise by 8-10%
