Aviation turbine fuel (ATF) prices for foreign carriers increased by approximately 5% on Friday, marking the second consecutive monthly rise. State-run oil marketing companies, including Indian Oil Corporation, adjusted the rates in line with higher global energy prices.
The price hike applies solely to international operations and foreign airlines, with no change in ATF prices for domestic carriers. In Delhi, the benchmark for ATF pricing in India, fuel costs for international airlines rose by $76.55 per kilolitre, a 5.33% increase, reaching $1,511.86 per kl.
This adjustment follows a previous increase on April 1, when ATF prices for domestic carriers surged by 25% to Rs 1,04,927.18 per kl. ATF prices in India have been deregulated for over two decades, linked to international benchmarks under an agreed pricing mechanism between airlines and oil companies.
Authorities are taking a cautious approach to pricing due to global energy market volatility, with geopolitical tensions, particularly related to the Iran conflict, driving up global fuel prices. Oil firms and the government are gradually passing on the increase, with international carriers facing market-linked rates while domestic airlines benefit from stable pricing to ease cost pressures.
Fuel costs are a significant expense for airlines, directly impacting operating costs. The recent price adjustment is anticipated to raise costs for international operators flying to and from India. Oil marketing companies revise ATF prices monthly based on global trends, with international carriers experiencing a second consecutive month of fuel cost increases while domestic airlines maintain stable pricing conditions.
