China will lower the wholesale jet fuel price for domestic airlines by 6.9 percent in the fourth quarter, but has yet to draw up plans to reduce carriers' fuel surcharges.

Effective yesterday, the price mainland airlines pay for jet fuel will be cut to 7,750 yuan (HK$8,794.32) per tonne, from 8,320 yuan, Xinhua News Agency reported.

"The fuel cost cut will be helpful to save airlines' operational costs. But the cut is much less than market expectation, as the international crude price has retreated more than 40 percent from the peak already," said Morgan Stanley analyst Edward Xu.

Since last year, the domestic jet fuel price has been adjusted quarterly in response to the international price fluctuations. It is the largest component of airlines' operating costs and has surged 36 percent on average since June for domestic carriers.

In June, the National Development and Reform Commission raised jet fuel prices by 1,500 yuan per tonne. In July, China Aviation Oil, the mainland's biggest supplier of jet fuel, announced another 720 yuan per tonne hike.

The wholesale jet fuel reduction, the first after four increases this year, could mark a turning point, analysts said.

The NDRC and Civil Aviation Administration of China have not proposed a cut in fuel surcharges.

Since July 1, China has allowed airlines to raise fuel surcharges on domestic flights by as much as 50 percent to offset rising jet fuel costs.