Government Fixes Jet Fuel Price For Airlines: What It Means For Your Next Flight Booking : Indian Aviation NewsAviation India

Friday, June 05, 2026

Government Fixes Jet Fuel Price For Airlines: What It Means For Your Next Flight Booking

The Centre has stepped in to stabilise jet fuel costs for Indian airlines as the West Asia crisis keeps global energy markets volatile and threatens to push aviation expenses higher.

Under the Rs 10,000-crore aviation turbine fuel, or ATF, stabilisation plan cleared by the Union Cabinet, participating Indian airlines will be able to buy jet fuel at a fixed benchmark price for both domestic and international operations.

The move sounds like relief for airlines, but for passengers, the question is: will it actually make flight tickets cheaper?

For domestic operations, the fixed free-on-board benchmark price has been set at Rs 86.32 per litre. For international operations, the benchmark is Rs 104.49 per litre.

These are base-level prices. After airport charges, oil company margins, fixed differentials and applicable taxes are added, the effective selling price works out to about Rs 115 per litre in Delhi, Rs 114.50 per litre in Mumbai and Rs 139 per litre in Chennai. The price varies across airports because state levies and airport-linked charges differ.

05/06/2026 News18

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