New pricing model aiming to prune jet fuel cost by 15% likely in two months

OMCs to shift to single uniform system instead of the prevailing dual pricing mechanism for domestic and overseas airlines

A new pricing mechanism for aviation turbine fuel (ATF) that aims to reduce domestic jet fuel cost  by at least 15 per cent is likely to be implemented within the next two months, industry executives said.

The change in the pricing policy is being made after talks between the civil aviation and petroleum & natural gas ministries.

Oil marketing companies such as Bharat Petroleum Corporation, Hindustan Petroleum Corporation and Indian Oil Corporation have decided to shift to the MOPAG (Mean of Platts Arab Gulf)-based pricing system.  An industry source said now there would be a single uniform pricing system