Indian Oil Corrects Jet Fuel Price Increase to Rs 1.04 Lakh/kl Amid Market Misinterpretation

Jet Fuel Prices in Delhi Show Reduced Increase After Indian Oil Clarification

Aviation turbine fuel (ATF), or jet fuel, prices in the national capital have seen a rise, though not as steep as initially reported, following a clarification from Indian Oil Corporation. The company has refuted earlier reports suggesting that ATF prices had more than doubled to over Rs 2 lakh per kilolitre in Delhi, citing a surge in global crude oil prices amid escalating tensions in West Asia.

According to Indian Oil, ATF prices have risen by approximately 8.5%, not 115% as previously indicated. The current price of jet fuel stands at around Rs 1.04 lakh per kilolitre. The revised figures come amidst heightened volatility in global energy markets due to the ongoing Iran-US-Israel conflict, which has disrupted supply chains and pushed crude prices higher.

The increased ATF prices continue to put pressure on airlines, with aviation fuel remaining one of the largest cost components for carriers. Even moderate increases can impact operational expenses, leading to potential cost pressures for airlines. Aviation Minister Ram Mohan Naidu has urged states to consider reducing Value Added Tax (VAT) on jet fuel to ease the burden on airlines and passengers.

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Discussions are underway with state governments to explore possible relief measures. Major aviation hubs such as Indira Gandhi International Airport and Chhatrapati Shivaji Maharaj International Airport continue to be affected, with VAT rates on ATF ranging between 18% and 29% in states like Delhi, Maharashtra, and Tamil Nadu.

Airlines including IndiGo, Air India, and Akasa Air have already adjusted fuel surcharges, and further revisions may follow as cost pressures persist. Additional challenges such as a weakening rupee and longer flight routes due to airspace restrictions linked to the conflict are also contributing to higher fuel consumption and operating costs for carriers.