Giving further relief to cash-strapped airlines, state-run oil companies on Saturday cut jet fuel prices by over 12 per cent to a 14-month low but carriers said they would continue to watch the situation before slashing passenger fares.

Aviation turbine fuel (ATF) prices were slashed by over Rs 5,580 per kilolitre in line with fall in international oil prices, an official of Indian Oil Corp, the nation's largest fuel retailer, said. It is for the third time in a month that oil companies are cutting jet fuel prices.

Indian Oil, Bharat Petroleum and Hindustan Petroleum at the time of monthly revision on November 1 reduced jet fuel prices by 17 per cent and then in the next three days they slashed them again by a further Rs 2,100 per kl, reflecting abolition of import duty on the fuel.

Airlines, however, remained non-committal on passing on the benefit to passengers. They said they would watch the situation for a little longer before deciding on cutting fares.

This is the fifth cut in ATF prices since August when rates rose to an all time high of Rs 71,028.26 per kl. Cumulatively, jet fuel prices this month have been slashed by more than 30 per cent, the official said.

With Saturday’s reduction, jet fuel prices are at the Rs 38,163.23 per kl levels that were prevalent in September 2007.

The revision today was on account of shifting pricing periodicity to every fortnight instead previously once-a-month practice.

Jet fuel price in Delhi was cut by Rs 5,585.19 per kl to Rs 39,380.51 per kl with effect from midnight tonight.

ATF price in Mumbai, home to the busiest airport in the country, will come down to Rs 40,687.42 per kl from Rs 46,518.85 per kl.