India has increased the price of Aviation Turbine Fuel (ATF) for international airlines by 5%, marking the second consecutive monthly hike. The revision reflects continued volatility in global energy markets and rising fuel costs impacting aviation operations worldwide.
State-run oil companies, including Indian Oil Corporation, implemented the price change in line with international benchmarks. However, the increase applies only to foreign carriers and international operations, while domestic airlines have been shielded from this latest hike.
In Delhi, which serves as the benchmark hub for ATF pricing, fuel rates for international airlines have risen by $76.55 per kilolitre, taking the total to $1,511.86 per kl. This follows a steep 25% increase in domestic ATF prices earlier in April, highlighting sharp fluctuations in recent months.
India deregulated ATF prices over two decades ago, linking them to global fuel trends. The current surge is largely driven by geopolitical tensions, including the ongoing Iran conflict, which has pushed up crude oil prices internationally.
To manage the impact, authorities have adopted a calibrated pricing strategy. While international airlines are being charged market-linked rates, domestic carriers are receiving moderated pricing to limit financial strain and maintain affordability in the domestic aviation sector.
Since fuel accounts for a major share of airline operating costs, the latest hike is expected to increase expenses for international carriers operating in India. This could eventually influence ticket pricing, route economics, and overall airline profitability.