ATF Prices Increase By 7.5 Percent Affecting Delhi Airlines
A sharp rise in aviation turbine fuel (ATF) prices by 7.5 percent has hit India’s capital just as the aviation industry was regaining operational momentum. Fuel retailers confirmed that the cost of jet fuel climbed by ₹6,271.5 per kilolitre, setting a new benchmark of ₹89,344.05 per kl in Delhi. The increase reverses three consecutive months of ATF price cuts and is being attributed to a global oil market rally.
This upward revision — the first since April — coincides with the broader volatility in global energy markets triggered by last month’s geopolitical tensions in West Asia. Analysts have linked the jump in oil prices to the aftermath of Israel’s military action against Iran, which sent crude benchmarks surging. The hike in aviation fuel prices, a direct fallout of these international disruptions, has sent ripples through India’s airline and logistics sectors, where fuel accounts for nearly 40% of operational costs. Delhi, being home to the Indira Gandhi International Airport — one of the busiest aviation hubs in South Asia — is expected to witness a near-immediate impact. While airlines have not officially responded to the price hike, industry observers anticipate that passenger airfares may rise in the coming weeks, particularly on domestic routes where fuel cost pass-through is more common.
Over the past three months, fuel retailers had cumulatively reduced jet fuel prices by nearly ₹12,240 per kilolitre across phased reductions in April, May, and June. These cuts had offered temporary relief to airlines recovering from pandemic-era losses. However, the recent ₹6,271 increase now wipes out nearly half of those savings in a single revision, highlighting the fragile cost structure of India’s aviation industry. The hike is likely to affect low-cost carriers most significantly, given their high sensitivity to price changes and dependence on fuel-efficient turnarounds. International carriers flying through Delhi may also reassess pricing strategies or seek fuel hedging support. With global oil futures continuing their volatile trajectory, Indian aviation faces renewed cost uncertainties just ahead of the monsoon travel surge and festive season planning. Jet fuel prices in India are revised monthly based on global benchmark rates and the rupee-dollar exchange rate. While the government does not regulate ATF directly, the rates vary by state due to differential taxation, particularly value-added tax (VAT).
In Delhi, VAT on jet fuel is lower than in many other states, yet the absolute cost increase is significant enough to have ripple effects across airline route economics and freight operations. The only respite in the latest fuel price revision came from a ₹58.50 reduction in commercial LPG cylinder rates. The price of a 19 kg commercial LPG cylinder has now fallen for the fourth straight month. Previously, rates were reduced by ₹24 per cylinder in June and by similar margins earlier this year. These successive cuts offer some breathing room to restaurants, small manufacturers, and commercial kitchens that rely on bulk LPG.
While ATF and LPG fall under different regulatory regimes, the divergent trend between the two underscores the broader challenge of balancing import. In a global context where fuel remains one of the most volatile cost centres, the latest ATF hike acts as a stark reminder of the interconnectedness of energy, geopolitics, and daily mobility. As Delhi’s aviation operators brace for a costlier fuel cycle, the city’s passengers and businesses may soon feel the impact in their tickets, tariffs, and transport bills.
