India Maintains Jet Fuel Prices for Domestic Flights Amid Airlines' Plea for Relief

India's State-Owned Oil Refiners Offer Relief to Airlines Amid Iran War Fallout

India's state-owned oil refiners have made a crucial decision to keep jet fuel prices steady for local flights, following a plea from airlines to hold off on further hikes. This move comes as the country's aviation industry grapples with the fallout from the Iran war.

According to spokespeople from the state oil processors, the fuel price for domestic flights will remain unchanged at 104,927 rupees ($1,104.25) a kiloliter in New Delhi for June. This decision is a significant relief to Indian airlines, which had seen the cost of aviation turbine fuel raised by 8.6% in April. The government had required refiners to keep prices constant in May, and they have now decided to maintain this rate throughout June.

In addition to keeping prices steady for local flights, refiners have also provided relief to Indian airlines by reducing jet fuel prices for international flights. Although the spokespeople did not provide immediate details on the size of the cut, this move is expected to further ease the burden on airlines.

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The decision to halt price increases for local flights was made in response to a plea from airlines, including Indian Oil Corp. and Bharat Petroleum Corp., which had asked refiners to hold off on further hikes until the end of the war. Key carriers have been forced to reduce flights through March and April due to depressed demand in the world's third-largest domestic aviation market, after passing on elevated costs to fliers in the form of higher fares.

India is heavily dependent on imported crude and fuels, and surging prices due to the conflict in the Middle East are weighing heavily on the nation's economy. The country's state-run refiners are racking up huge losses, forcing them to raise the cost of fuels including gasoline to offset some pressure.

To soften the blow to the aviation industry, India has announced a number of measures, including rebates on plane parking charges and tax reductions on fuel for flights operating out of Delhi and Mumbai, its biggest airports. Airlines are also grappling with a weaker rupee, which makes it costlier for them to pay in dollars for aircraft leases and overseas airport charges.

The nation's carriers had been using Iran's airspace to fly to Europe and America after Pakistan banned them from using its airspace.

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