The price of aviation turbine fuel (ATF), or jet fuel, in Delhi was cut by Rs 622 per kilolitre (kl), or 1.03 per cent, to Rs 63,077 per kl with effect from midnight tonight, 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 per cent 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 per cent 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 per cent 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 per cent 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.