ATF Prices Rise ₹16 Per Litre To ₹137, Marking Third Straight Monthly Hike
· Free Press Journal
Aviation turbine fuel (ATF) prices have been increased by 13.22%, or about ₹16 per litre, taking the domestic price from ₹121.28 to ₹137 per litre. This marks the third consecutive monthly increase in jet fuel prices and could add to operating costs for domestic airlines.
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Fuel is one of the largest expenses for airlines, making changes in ATF prices an important factor for their overall cost structure.
The latest increase comes amid continued volatility in global crude oil and petroleum product markets.
ATF Prices Hiked 5.46% To ₹121.28/Litre: Will Flight Travel Get Costlier As Jet Fuel Makes Up 40% Of Airlines’ Costs?Prices climb for third consecutive month
The latest revision represents a significant increase from the previous price of ₹121.28 per litre. The 13.22% rise takes the price of ATF to ₹137 per litre.
The increase could put additional pressure on airlines operating domestic services, particularly as fuel accounts for a substantial portion of airline operating expenditure.
The latest hike also comes against the backdrop of changes in the government's export levy structure for petroleum products.
Centre cuts ATF export levy
Separately, the government has reduced the export levy on ATF to ₹10.5 per litre from ₹15 per litre for the fortnight beginning October 1. The levy on diesel exports has also been lowered to ₹16 per litre from ₹20 per litre.
However, the reduction in the export levy applies to ATF meant for overseas markets and does not reduce the domestic price of jet fuel. For domestic airlines, therefore, the increase in ATF prices remains the key development.
The Centre introduced export levies on diesel and ATF on March 27, 2026, amid the West Asia crisis. The measure was intended to discourage exports and support domestic availability of petroleum products.
Since then, the levy rates have been revised every fortnight, depending on international prices of crude oil and petroleum products.
The government notification also said there has been no change in the existing excise duty rates on petrol and diesel cleared for domestic consumption.
With domestic ATF now priced at ₹137 per litre, airlines are likely to face higher fuel-related costs. The impact on operating expenses will depend on subsequent movements in crude oil and jet fuel prices.