Indian oil clarifies ATF price rise at 8.5%, not 115%

The prices of aviation turbine fuel (ATF), or jet fuel, have seen a spike, though not as steep as reported earlier, following a clarification from Indian Oil Corporation.

Reports had earlier suggested that ATF prices had more than doubled to over ₹2 lakh per kilolitre in Delhi, driven by a surge in global crude oil prices amid escalating tensions in West Asia.

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However, Indian Oil has now clarified that ATF prices have risen by about 8.5%, not 115% as previously indicated. The current price of jet fuel stands at around ₹1.04 lakh per kilolitre.

The rise in ATF prices continues to put pressure on airlines, as aviation fuel remains one of the largest cost components for carriers, and even moderate increases can impact operational expenses.

According to reports, some airlines, including IndiGo, Air India, and Akasa Air, have already adjusted fuel surcharges, and further revisions may follow as cost pressures persist.

Civil Aviation Minister Ram Mohan Naidu has also 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.

Amid the ongoing West Asia crisis, with Iran reportedly blocking the Strait of Hormuz, which has significantly impacted crude oil prices, the state-owned Indian Oil Corporation Limited (IOCL) has raised the prices of its premium petrol and diesel variants in New Delhi.

The price of XP100 petrol, a 100-octane fuel designed for high-end luxury cars and superbikes, has increased by ₹11 to ₹160 per litre. Meanwhile, the price of IOCL’s premium diesel variant, Xtra Green, has increased from ₹91.49 to ₹92.99 per litre, according to media reports.