Aviation Turbine Fuel (ATF) prices for international airlines were reduced by nearly 27 per cent in the monthly revision on Monday, offering significant relief to foreign carriers as global crude and jet fuel benchmarks softened. However, ATF rates for domestic airlines were kept unchanged for the second consecutive month. The sharp reduction brings down jet fuel prices for international carriers by over USD 400 per kilolitre, taking them to around USD 1,100 per kl, industry sources said.
Earlier, international ATF rates had increased by USD 76.55, or 5.33 per cent, to USD 1,511.86 per kl on May 1, following a sharp jump in April when prices more than doubled to USD 1,435.31 per kl amid volatile global energy markets.
Domestic airlines will continue to pay Rs 104,927.18 per kilolitre, the same rate that came into effect on April 1. Since then, prices for domestic carriers have remained unchanged for two consecutive monthly cycles. Despite elevated global fuel prices earlier, state-run oil marketing companies had avoided passing on the full burden to airlines, choosing instead to absorb part of the cost to prevent a sharp rise in airfares. Now, with international prices easing, the benefit has been passed on to foreign carriers, while domestic aviation continues to operate under a pricing structure that industry sources say remains below cost.
Also read: 17 lakh ton urea imports: Govt issues 2nd global tender
In a separate development, oil marketing companies increased commercial LPG prices by Rs 42 per 19-kg cylinder, pushing rates to a new record high. In Delhi, the revised price now stands at Rs 3,113.50 per cylinder, up from Rs 3,071.50 earlier. This follows an even steeper hike of Rs 993 implemented on May 1, which had already taken commercial LPG prices to unprecedented levels.
Prices of 5-kg free-trade LPG (FTL) cylinders were also raised by Rs 11, bringing the new rate to Rs 821.50 per cylinder. However, household consumers were spared any revision, with the price of the 14.2-kg domestic LPG cylinder remaining unchanged at Rs 913 since March, when it was increased by Rs 60.
The latest changes are part of the monthly pricing review conducted by state-owned oil marketing companies. Prices continue to vary across states due to local taxes, including VAT.
Sources said ATF for domestic airlines is still being sold below cost, leading to significant under-recoveries for oil companies. There was no change in petrol and diesel prices this month, after an increase of about Rs 7.50 per litre last month. In Delhi, petrol continues to retail at Rs 102.12 per litre and diesel at Rs 95.20 per litre. Airlines globally are facing fuel supply pressures due to ongoing disruptions in West Asia, where conflict has impacted energy flows. The Strait of Hormuz, a key global shipping route for crude and petroleum products, remains effectively closed as tensions persist.
In India, jet fuel pricing was deregulated over two decades ago, with rates linked to international benchmarks. However, industry sources said a calibrated pricing approach has been adopted in recent months due to extreme volatility in global energy markets. While foreign carriers are charged market-linked rates, domestic airlines continue to receive moderated pricing support, they said. Oil marketing companies—Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited—are expected to continue bearing under-recoveries due to subsidised or below-cost fuel sales.
According to oil ministry estimates, combined losses on petrol, diesel, and domestic LPG stood at around Rs 650 crore per day in May, reflecting continued pressure on state-run fuel retailers amid global price volatility.
Follow us
