Indian Oil Corrects Jet Fuel Price, Posts 8.5% Increase to Rs 1.04 Lakh per KL

Rise in Aviation Turbine Fuel Prices Eases, but Pressure on Airlines Remains

Prices of aviation turbine fuel (ATF), or jet fuel, in the national capital have seen an increase, though not as steep as initially reported, after a clarification from Indian Oil Corporation. According to the company, ATF prices have risen by about 8.5%, not 115% as previously indicated. The current price of jet fuel stands at around Rs 1.04 lakh per kilolitre.

The confusion came amid 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 escalating tensions in West Asia have driven a surge in global crude oil prices, impacting the national capital's ATF prices.

Despite the revised figures, the rise in ATF prices continues to put pressure on airlines. Aviation fuel remains one of the largest cost components for carriers, and even moderate increases can impact operational expenses. Airlines including IndiGo, Air India, and Akasa Air have already adjusted fuel surcharges, and further revisions may follow as cost pressures persist.

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Civil 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. 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.

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.

Note: The table above shows the fuel surcharge adjustment and revisions planned by the mentioned airlines. This data is subject to change and may not reflect the current status.

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