New Delhi, July 2 -- India's state-owned oil companies on Wednesday cut prices of jet fuel used by domestic airlines by Rs.5 a litre and commercial cooking gas cylinders, by Rs.183.50 each, and one private fuel retailer rolled back retail price hikes as oil prices fell sharply following an ebbing of the conflict in West Asia. India's average crude oil import price fell below $70 a barrel on Friday for the first time since the West Asia conflict began, but petrol and diesel rates in pumps operated by state-owned oil marketing companies (OMCs) remained unchanged, as did prices of liquified petroleum gas (LPG) cylinders used by households. While a cut in these prices may not be imminent, analysts say that the reduction in prices of aviation turbine fuel (ATF) and commercial LPG suggest that supply and logistical constraints that caused a spike in oil prices may be at an end. The conflict, which started with the US and Israel attacking Iran on February 28, closed the Strait of Hormuz - a key transit route for about a fifth of global oil trade. The passage is now open. State-run OMCs may reduce petrol and diesel rates after stabilization of international oil prices and after recovering some of their revenue losses in the last four months, people familiar with the matter said. Besides, the government may also recoup part of about Rs.1.23 lakh crore it gave to OMCs for shielding domestic consumers from extreme volatility in the global energy market, they added, asking not to be named. State-run OMCs initially held pump prices of petrol and diesel despite losing up to Rs.26 a litre on petrol and Rs.81.90 on diesel. On March 27, the government gave them some respite by reducing excise duty by Rs.10 on the two fuels each at the cost of Rs.14,000 crore per month to the exchequer. As the conflict intensified , international crude prices climbed further, resulting in more losses for OMCs, prompting them to raise petrol and diesel prices by a cumulative Rs.7.35 and Rs.7.53 a litre, respectively, between May 15 and May 25. The prices of commercial cooking gas cylinders were also increased, by a total of Rs.1,422, across six tranches from Rs.1,691.50to Rs.3,113.50 per 19-kg refill between February 1 and June 1, 2026. On Wednesday, OMCs reduced prices of ATF used by domestic airlines by Rs.5 per litre, bringing its effective price to Rs.110 per litre. The government last month launched an ATF price stabilisation scheme giving jet fuel at a fixed price of Rs.115 per litre for up to three years. The move is expected to help airlines, who have been hit badly by the price rise, the conflict (which has closed the air space over Iran, necessitating a go-around on some routes), and the depreciation of the Indian rupee. Fuel accounts for almost 40% of the operational cost of airlines. Reduction in jet fuel rates was expected as tensions in West Asia have decreased alongside the partial opening of the Strait of Hormuz, Mark D Martin, CEO of aviation advisory firm Martin Consultancy. "Travellers will expect to see a marginal reduction in airline ticket cost as a weaker rupee has increased the base airline operating costs," Martin said. "Airlines need to immediately rationalise the already highfuel surcharge and refund the excess surcharge taken for advance ticket bookings," the CEO added. State-run OMCs on Wednesday also reduced prices of commercial LPG (for non-domestic use) by Rs.183.50 per 19-kg refill, thus reducing its effective price to Rs.2,930 per cylinder from Rs.3,113.50 in Delhi....