Aviation turbine fuel (ATF) prices for international carriers have been increased by around 5% from May 1, marking the second consecutive monthly hike as global energy costs continue to rise. However, domestic airlines have been shielded from this increase, with oil companies keeping local ATF rates unchanged to protect the aviation sector and consumers.
State-run retailers, including Indian Oil Corporation, implemented the revision, raising international ATF prices by $76.55 per kilolitre to $1,511.86 per kl in Delhi. The move follows a significant hike in April, when domestic ATF prices were increased sharply.
Jet fuel prices in India are deregulated and linked to global benchmarks. However, due to heightened volatility in crude oil markets—largely driven by geopolitical tensions in West Asia—authorities have adopted a calibrated approach to pricing, passing on increases selectively rather than uniformly.
Despite rising input costs, oil marketing companies such as Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited have chosen to hold domestic ATF prices steady. This decision aims to reduce the financial burden on domestic airlines and prevent a ripple effect on ticket prices.
According to industry insights, the government and oil firms are attempting to balance global price alignment with domestic economic stability. A large portion of petroleum products—nearly 80%—have seen no price changes, ensuring minimal impact on everyday consumers. Price increases have largely been limited to industrial and commercial segments, including bulk fuels and international aviation operations.
Retail fuel prices such as petrol and diesel, as well as domestic LPG cylinders, also remain unchanged, reflecting efforts to contain inflation and maintain affordability.