Centre Cuts ATF Prices By ₹5 Per Litre As Crude Softens

The Centre has reduced aviation turbine fuel (ATF) prices by approximately ₹5 per litre, providing some relief to domestic airlines after a period of elevated fuel costs driven by geopolitical tensions and volatile crude oil markets.

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Following the revision, ATF in Delhi is now priced at around ₹110 per litre, according to a PTI report.

The reduction comes after jet fuel prices had surged to record highs in recent months amid the conflict in West Asia, which significantly disrupted global energy markets and pushed up crude oil benchmarks.

The Iran-Israel conflict had triggered a sharp rise in international oil prices, leading to a corresponding increase in aviation turbine fuel costs in India.

As ATF constitutes a major component of airline operating expenses, the surge had added considerable financial pressure on domestic carriers.

However, global energy prices have since eased. The decline in crude oil rates has been supported by improving geopolitical conditions, including a ceasefire agreement between the United States and Iran.

Centre Raises Windfall Tax On Diesel, ATF Exports; Petrol Rate Unchanged

The easing of tensions has helped stabilise supply expectations and reduced fears of prolonged disruption in key shipping and energy routes.

In addition to the ATF price cut, the government on June 30 revised export duties on petrol, diesel, and aviation turbine fuel for the fortnight beginning July 1. However, it chose to keep excise duties on domestically sold petrol and diesel unchanged, maintaining stability in retail fuel taxation for consumers.

The adjustment in ATF prices is expected to bring some relief to airlines that have been facing cost pressures due to elevated fuel expenses over the past several months.

Fuel typically accounts for a significant share of airline operating costs, and fluctuations in ATF prices directly impact profitability and fare structures.

Overall, the latest revision reflects the government’s response to changing global crude oil dynamics while balancing fiscal considerations and sectoral relief needs.

The move is likely to be closely watched by the aviation industry as it navigates a volatile demand and cost environment.

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