The price of ATF, or jet fuel, in Delhi was lowered by Rs. 3,025.34 per kilolitre, or 4 per cent, to Rs.71,800.21 per kl, according to Indian Oil Corp.
The rate cut follows a Rs. 753.34 per kl hike in rates last month.
The price was cut as international oil prices fell and the rupee appreciated against US dollar, making imports cheaper.
In Mumbai, jet fuel costs Rs. 74,105.16 per kl as against Rs. 77,322.6 per kl previously, IOC, India's largest fuel retailer, said.
Rates at different airports vary because of difference in local sales tax or VAT.
Jet fuel constitutes over 40 per cent of an airline's operating costs and the price cut will reduce the fuel cost of the carriers.
Separately, the price of non-subsidised cooking gas (LPG), which customers buy after using up their quota of 12 subsidised cylinders, was cut by Rs. 100 per cylinder, the third straight reduction in rates since February.
The 14.2-kg cooking gas cylinder that consumers buy beyond their entitled 12 bottles at subsidised rates, will now cost Rs. 980.50, down from Rs. 1,080.50, in Delhi.
The rates were on February 1 cut by Rs. 107 - from Rs. 1,241 per cylinder to Rs. 1,134, and then by Rs. 53.5 per cylinder last month.
A subsidised LPG cylinder in Delhi costs Rs. 414.Non-domestic LPG rates were at the beginning of the year hiked by a steep Rs. 220 per cylinder but have now been cut in line with softening of international rates.
IOC said losses on LPG have come down to Rs. 505.50 per 14.2-kg subsidised cylinder from Rs. 605.50 in previous month and Rs. 656 in February. The loss was Rs. 762.50 in January.
The three fuel retailers - IOC, Hindustan Petroleum Corp Ltd (HPCL) and Bharat Petroleum Corp Ltd (BPCL) - revise the prices of jet fuel and non-domestic LPG on the first day of every month, based on the average international price in the preceding month.