Indian civil aviation industry
Indian civil aviation industryWikimedia commons

Indian Oil Corporation (IOC) Wednesday cut aviation turbine fuel (ATF) prices by Rs 515, 10 days after hiking them by Rs 4,175 on Feb. 29. The fuel will now cost Rs 38,785/kl in Delhi. 

The revised prices are effective from March 9 midnight, the company said in a statement on Wednesday.

Finance Minister Arun Jaitley hiked excise duty on ATF from 8 percent to 14 percent in the union budget 2016-17 on Feb. 29.

The Indian Oil stock was trading at Rs 387.75 at around 11.03 a.m. on Thursday, down 0.55 percent from its previous close.

Aviation stocks reacted positively to the ATF price cut.

The Jet Airways stock was trading at Rs 544.95 at about 11.07 a.m., up 0.91 percent from its previous close. SpiceJet gained 1.96 percent to trade at Rs 65.05, while InterGlobe Aviation was up 0.59 percent at Rs 816.

The Sensex was down 1.19 percent at 24,498 at around 12.50 p.m. Maruti Suzuki, Cipla, NTPC and Coal India were gaining, while BHEL, Reliance Industries and Infosys were trading in the red.

The revised ATF prices in the four metros are: 

City New Prices (as of Mar.10) Previous prices (as of Mar.1)
Delhi Rs 38,785.46 Rs 39, 301. 31
Kolkata Rs 43, 893.53 Rs 46, 038.16
Mumbai Rs 38, 425.94 Rs 38, 425.94
Chennai Rs 41, 459.29 Rs 41, 991.65