New Delhi: Aviation turbine fuel prices for domestic airlines were raised by 5.46% on Tuesday, September 1, marking the second straight monthly increase.
ATF now costs ₹121.28 per litre, up ₹6.28 from ₹115 per litre.
The increase matters for passengers too. Fuel accounts for nearly 35% to 40% of an airline’s operating costs in India. A sustained rise can put pressure on carriers to increase fares, particularly on routes where demand is already strong. Air ticket prices, though, depend on demand, competition and how many seats are available.
ATF prices rise for second month
The September hike follows a 7.5% increase in August. Jet fuel had earlier become cheaper for three straight months starting April 2025.
Those reductions cut ATF prices by ₹12,239.17 per kilolitre. The following increases of ₹8,949.38 per kilolitre have since erased nearly three-fourths of that relief.
ATF rates vary across cities owing to local taxes such as VAT. In August, prices stood at ₹86,077.14 per kilolitre in Mumbai, ₹95,512.26 in Chennai and ₹95,164.90 in Kolkata.
Why jet fuel is getting expensive
The latest revision comes as global crude oil prices remain elevated amid the Iran conflict and concerns over supplies moving through the Strait of Hormuz.
US benchmark West Texas Intermediate crude traded above $86 a barrel after gaining 2.8% in the previous session. Brent crude was close to $90 a barrel.
Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation revise ATF prices on the first day of every month. The calculation is linked to international fuel benchmarks and foreign exchange rates.
Will flight tickets become expensive?
Airfares may face upward pressure if fuel prices remain high. Airlines do not automatically raise fares after every ATF revision, though.
Passenger demand, competition between carriers, travel dates and seat availability still decide what travellers eventually pay. For someone booking around festivals or a long weekend, that difference can show up pretty quickly.
