The Indian government reduced the price of aviation turbine fuel supplied to domestic airlines by Rs 5 per litre [3].
The price cut provides immediate financial relief to domestic carriers facing high operational costs. The move follows a trend of softening international oil prices and a reduction in tensions across West Asia [4, 5].
The new rate for aviation turbine fuel is set at Rs 110 per litre [1], down from the previous rate of Rs 115 per litre [2]. In terms of bulk pricing, the rate has shifted from Rs 1.15 lakh per kilolitre to Rs 1.10 lakh per kilolitre [2]. These specific rates were reported for Delhi [1, 3].
The Ministry of Petroleum & Natural Gas said the reduction is tied to global market shifts [1, 2]. Alongside the fuel price adjustment, the government revised export duties on petrol, diesel, and aviation turbine fuel effective July 1, 2024 [6].
While the fuel for aircraft saw a decrease, the government maintained existing excise duties on petrol and diesel [1, 3]. This indicates a targeted effort to support the aviation sector specifically, rather than a broad reduction in all fuel taxes.
The revision of export duties and the ATF price drop are intended to align domestic costs with international trends [5]. This adjustment comes as airlines navigate the volatile costs of fuel, which remains one of the largest expenses for commercial flight operations.
“The new rate for aviation turbine fuel is set at Rs 110 per litre.”
The reduction in aviation turbine fuel costs lowers the overhead for Indian carriers, which may lead to stabilized ticket prices or improved profit margins. By linking domestic prices to softening international oil rates and easing geopolitical tensions in West Asia, the Indian government is utilizing fuel pricing as a lever to maintain the competitiveness and stability of its domestic aviation market.
