New Delhi: To support the country's distressed airline sector due to the economic fallout of Covid-19, fuel retailer IndianOil will now revise jet fuel prices on a fortnightly basis.
Currently, ATF prices are revised at the beginning of every month.
According to an aviation industry insider, the move will provide some financial relief to the airlines which are reeling under decline in cash flows due to lower passenger traffic.
The move, some industry analysts say might even allow OMCs to downward revise the air turbine fuel prices twice a month due to decline in global crude oil cost.
At present, fuel based expenses account for over 33 per cent of the overall operating cost of an airline.
India, currently, has some of the world's highest rates of taxation on the ATF which massively drives up the fuel cost component.
Lately, the industry has been demanding from the Centre to include the fuel type in the ambit of GST, similar to the status given to 'Bunker Diesel' which is used in the shipping sector.
"In support of the airlines clients, the Corporation will now revise ATF prices every fortnight instead of at the beginning of every month," the OMC said in a statement.
"Over 115 IndianOil aviation fuelling stations across the country are operating normally. The Corporation has reduced aviation fuel prices with effect from today in line with international prices of the product."
As per the statement, IndianOil continues to maintain normal operations at its refineries, pipelines and marketing locations despite the threat of COVID-19 pandemic in the country.
"All IndianOil refineries remain unaffected and are operating at 100 per cent capacity for the last one week, and the upliftment of finished products from them remains normal as on date with upcountry bulk storage locations building up their stocks," the statement said.