New Delhi: State-owned oil marketing companies (IOCL, BPCL, HPCL) have increased the price of Aviation Turbine Fuel (ATF) supplied to domestic airlines by Rs 6.28 per litre. With this revision, which has been implemented from September 1, the price of jet fuel has reached Rs 121.28 per litre from Rs 115. This is the second consecutive monthly increase after a hike of Rs 5 in August.
Will air travel become more expensive?
Impact on costs: Fuel costs alone constitute 35 to 40 percent of the total operating costs of Indian airlines.
Possibility of price hike: The financial burden on airlines is likely to increase due to continuous increase in fuel prices, and air ticket prices are likely to increase during the upcoming festive season. However, the final ticket price will be decided based on competition and demand for seats.
Windfall tax cut on fuel exports
The central government had recently reduced the special additional excise duty on petrol, diesel and ATF exports to maintain stability in the crude oil and fuel markets.
ATF export duty was reduced from Rs 22 to Rs 19.5 per litre and diesel export duty from Rs 25.5 to Rs 24.
West Asia crisis: Since the beginning of 2026, the increasing military conflicts in the Middle East between the US and Iran and in the Red Sea region have affected crude oil supplies, creating instability in the global jet fuel market.
Commercial LPG price also increased: Along with jet fuel, the price of a 19 kg commercial LPG cylinder has also increased by Rs 9.50 to Rs 2,747.