Aviation turbine fuel (ATF), or jet fuel, prices for international airlines were raised by about 5 per cent on Friday, May 1, marking the second consecutive monthly increase as state-run oil companies
continue to pass on rising global energy costs in a calibrated manner.
There has, however, been no change in ATF prices for domestic airlines, with oil marketing companies choosing to shield local carriers and consumers from the volatility in global crude markets.
Latest International ATF Rates
ATF prices for international carriers were increased by $76.55 per kilolitre, or 5.33 per cent, to $1,511.86 per kl in Delhi, according to state-owned fuel retailers.
This follows a sharp revision at the start of April, when ATF rates for domestic airlines were raised by 25 per cent to Rs 1,04,927.18 per kl, one of the steepest hikes in recent years.
Jet fuel prices were deregulated over two decades ago and are aligned with international benchmarks under a framework agreed upon with airlines. However, the recent surge in crude oil prices, driven by geopolitical tensions in West Asia, has prompted authorities to adopt a staggered or calibrated pricing strategy.
However, industry sources told news agency PTI that since the West Asia crisis-induced surge in global energy prices warranted the steepest increase ever to be made in the ATF prices, the government and state-owned oil companies decided to adopt a calibrated approach.
Domestic ATF Prices Held Steady
State-owned oil companies, including Indian Oil Corporation, confirmed that ATF prices for domestic airlines remain unchanged despite rising input costs.
“Aviation turbine fuel (ATF) prices for domestic airlines remained unchanged on Friday as state-owned oil companies decided to absorb the rise in global fuel prices to protect airlines and consumers,” IndianOil said in a statement.
The company added that there has been no revision in retail fuel prices affecting the general public. “Retail prices of petrol and diesel remained unchanged for consumers, who account for nearly 90 per cent of total consumption. Similarly, prices of domestic LPG (14.2-kg cylinders) for about 33 crore consumers have not been altered.”
80% Petroleum Products See No Price Change
The current pricing approach reflects a broader attempt to balance global price alignment with domestic stability.
IndianOil noted that around 80 per cent of petroleum products have seen no price change, ensuring minimal impact on the majority of consumers. At the same time, about 4 per cent of products have witnessed a price decrease, while 16 per cent, largely industrial fuels, have recorded an increase.
“Price revisions have been limited to select industrial segments, which account for a relatively small share of consumption and are subject to routine monthly adjustments based on global benchmarks,” the company said.
It further clarified that revisions have been made in bulk and commercial LPG cylinders, bulk diesel and ATF for international airline operations, while kerosene distributed under the public distribution system (PDS) has also remained unchanged.
ATF prices are revised on the first of every month based on input costs. With crude oil prices remaining elevated due to geopolitical risks, oil companies appear to be selectively passing on the burden.
The calibrated approach, absorbing costs in mass-consumption fuels while adjusting prices for industrial and international segments, aims to maintain economic stability while staying broadly aligned with global energy trends.
(With PTI inputs)
