Jet Fuel Price Cut Brings Relief to Airlines

India’s state-run oil marketing companies have announced a significant reduction in Aviation Turbine Fuel (ATF) prices for international flights, providing much-needed relief to airlines grappling with rising operational costs. For June, international ATF prices have been reduced by nearly 27 percent, or about $400 per kilolitre, bringing the rate down to around $1,100 per kilolitre. The move comes amid challenges posed by elevated crude oil prices and geopolitical tensions in West Asia.

The price cut has brought international jet fuel rates almost on par with domestic ATF prices. While international ATF now costs approximately ₹1.05 lakh per kilolitre, domestic jet fuel in Delhi is priced at ₹1.04 lakh per kilolitre, with no revision announced for the second consecutive month. Fuel accounts for nearly 40 percent of airline operating expenses, a figure that recently rose to as much as 60 percent due to soaring oil prices and longer flight routes caused by regional conflicts. The reduction is expected to ease financial pressure on airlines and support international flight operations in the coming months.