Atf

Govt mulls ATF price stabilisation fund for airlines amid rising fuel costs

Amid rising jet fuel prices, the government is considering whether to revive the price stabilisation fund and is also in discussions with airlines as well as oil marketing companies on the high ATF costs. Aviation Turbine Fuel (ATF) accounts for around 40 per cent of an airline's operational expenses, and with the continuing West Asia turmoil, fuel prices have been on the rise. "One of the most important things is how the West Asia crisis is putting a big burden on ATF prices. We are in discussions with airlines and OMCs (Oil Marketing Companies)," Naidu said on the sidelines of a conference in the national capital on Tuesday. The government is considering whether to have the price stabilisation fund for the ATF, according to a senior official. Specific details could not be immediately ascertained. In June, the Union Cabinet cleared a one-time budgetary support not exceeding Rs 10,000 crore for Oil Marketing Companies (OMCs) to provide ATF price stabilisation in order to provide

Federation of Indian Airlines seeks review of existing ATF pricing formula

The Federation of Indian Airlines (FIA) is seeking a review of the existing jet fuel pricing formula, and said domestic ATF should be priced on the actual cost of fuel plus a reasonable margin rather than international benchmark pricing. The unprecedented increase in fuel costs, compounded by geopolitical disruptions and rupee depreciation, is placing significant pressure on airline cash flows and viability, it said. In a letter to the Civil Aviation Ministry late last month, FIA also said that "if timely relief is not available, the airlines may be compelled to withdraw from several unsustainable routes." Air India, IndiGo and SpiceJet are the members of FIA. From around 30-40 per cent, airlines' operating costs have increased to around 55-60 per cent under the prevailing circumstances, out of which ATF remains the single largest variable cost, it said. The current conflict (West Asia) has pushed the Brent Crude from USD 72 / BBL to USD 118 / BBL, and the resultant ATF price (MOP

Govt in talks with airlines, OMCs over high ATF prices: Aviation minister

Civil Aviation Minister K Rammohan Naidu on Tuesday said the ministry is in discussions with airlines and oil marketing companies on high jet fuel prices due to the West Asia crisis. Airlines are facing headwinds due to the rising prices of Aviation Turbine Fuel (ATF), which accounts for around 40 per cent of a carrier's operational costs. "One of the most important things is how the West Asia crisis is putting a big burden on ATF prices. We are in discussions with airlines and OMCs (Oil Marketing Companies)," Naidu said on the sidelines of a conference in the national capital on Tuesday. On Monday, the country's largest airline IndiGo announced a hike in fuel surcharge for domestic and international flights in the wake of rising jet fuel prices. IndiGo had said ATF prices have remained volatile in recent months, especially following the geopolitical situation in the Middle East. According to the airline, the continuous rise in fuel prices, with the latest month-on-month increase

IndiGo raises fuel surcharge from Oct 6 as jet fuel prices climb

The revised charges will apply to new bookings made from October 6

India cuts windfall tax on export of petrol, diesel, and aviation fuel

Export duty on diesel has been reduced to ₹20 per litre from ₹25, while levies on petrol have been cut to ₹0.5 from ₹1.5 per litre, respectively

Brics Summit 2026 could pave way for sustainable aviation fuel market

BRICS may align SAF standards, feedstock mapping and carbon tracking to enable cross-border trade and support global aviation decarbonisation

Govt brings back duty on petrol exports from Sept 1, cuts levy on ATF

Diesel export duty rises to Rs 25 per litre and petrol attracts a Rs 1.5 levy, while the export duty on aviation turbine fuel falls to Rs 19 per litre

ATF price up 5.46%, commercial LPG rates of 19 kg cylinder hiked by ₹9.50

Aviation turbine fuel (ATF) prices on Tuesday were hiked by 5.46 per cent, while the price of commercial LPG, used by establishments such as hotels and restaurants, was raised by Rs 9.50 per 19-kg cylinder, in line with a rise in their international benchmarks. The price of Jet fuel or ATF has been raised by Rs 6.28 per litre, or 5.46 per cent, to Rs 121.28 per litre for domestic airlines, according to state-owned oil firms. The increase comes on the back of a Rs 5 a litre rise in rates on August 1. The two increases will add to the financial burden of airlines, for whom ATF makes up to 40 per cent of operating costs. Commercial LPG prices have increased from Rs 2,738 per 19-kg cylinder to Rs 2,747.50. The price of the 5-kg market-priced cooking gas LPG cylinder, called 5-kg FTL, has also been increased from Rs 762 to Rs 764. The rate hike follows two straight monthly reductions - a steep Rs 192 per 19-kg cylinder cut on August 1 and a Rs 183.5 cut on July 1. The two reductions in

No proposal to blend ethanol with ATF, says Civil Aviation Minister Naidu

Civil Aviation Minister K Rammohan Naidu on Thursday said there is no proposal to blend ethanol with Aviation Turbine Fuel (ATF) and that spreading misinformation on aviation safety creates needless anxiety among air travellers. His comments come against the backdrop of former Delhi Chief Minister Arvind Kejriwal claiming that the central government was planning to blend ethanol in ATF. "Sources indicate that the Modi government plans to mix ethanol in Aviation Turbine Fuel (ATF). Experts say that this could seriously compromise the safety of flights," Kejriwal said in a post on X. Naidu said the claim that the government plans to blend ethanol with ATF is completely false and irresponsible and added that there is no such proposal. "Spreading misinformation on aviation safety only creates needless anxiety among air travellers. Passenger safety remains the Government's highest priority," the minister said in a post on X. Elaborating, Naidu said ethanol and Sustainable Aviation Fuel

Govt raises windfall tax on petrol, diesel, ATF exports from August

Special additional excise duty on exports of petrol, diesel and aviation turbine fuel has been increased, while domestic excise duty rates remain unchanged.

India raises windfall tax on diesel and ATF exports amid oil surge

India has increased windfall taxes on diesel and aviation turbine fuel exports as global oil prices rise following the escalation of the US-Iran conflict

Centre raises export duty on diesel, ATF amid West Asia supply concerns

The government has increased export duties on diesel and aviation turbine fuel to discourage exports and ensure adequate domestic supplies amid the ongoing West Asia conflict

India fixes jet fuel benchmark at ₹115/l under new ATF stabilisation plan

Domestic airlines will be able to buy aviation turbine fuel (ATF) at a fixed price of Rs 86.32 per litre for up to three years under a new government-backed price stabilisation scheme aimed at shielding carriers and passengers from a surge in global fuel costs. Under the voluntary scheme, participating airlines will pay the fixed free-on-board (FOB) benchmark price plus airport charges, oil company margins and applicable taxes, taking the effective selling price to about Rs 115 per litre in Delhi, Rs 114.5 in Mumbai and Rs 139 in Chennai, according to government officials. The benchmark compares with the current effective ATF price of about Rs 105 per litre in Delhi, which has remained frozen for more than two months after the government allowed only a partial pass-through of soaring global fuel costs triggered by the outbreak of the West Asia conflict in late February. While participating airlines will pay the fixed price, those not opting for the scheme will be charged prevailing

Cabinet approves ₹10,000 crore fund to stabilise ATF costs amid crisis

OMCs will be compensated for losses arising from elevated international ATF prices whenever the prevailing import parity price exceeds a benchmark price determined by the government

Russian govt imposes ban on aviation fuel exports until November 30

The decision has been take to to ensure stability in the domestic fuel market, said Russia government

India's two largest aviation hubs cut ATF tax. How much can airlines gain?

Experts said lower ATF taxes at India's two biggest aviation hubs could improve airline operating economics and margins, though passengers may not see meaningful fare cuts immediately

Delhi govt cuts VAT on ATF from 25% to 7% to benefit airlines, passengers

The reduction comes against the backdrop of uncertainty in global fuel supplies linked to the ongoing conflict in West Asia

Diesel export duty at ₹23/l, ATF at ₹33/l; petrol stays nil: Govt

There is no change in excise duty on petrol and diesel meant for domestic consumption

Govt permits blending of synthetic hydrocarbons with aviation turbine fuel

India has expanded ATF norms to allow blending with synthetic hydrocarbons, supporting alternate fuels and reducing reliance on crude imports amid energy concerns

Govt revises ATF norms, allows blended inputs for cleaner fuel options

The change allows for the inclusion of alternative and synthesised components within the fuel mix