India fixes jet fuel benchmark at ₹115/l under new ATF stabilisation plan : Indian Aviation NewsAviation India

Thursday, June 04, 2026

India fixes jet fuel benchmark at ₹115/l under new ATF stabilisation plan

Domestic airlines will be able to buy aviation turbine fuel (ATF) at a fixed price of ₹86.32 per litre for up to three years under a new government-backed price stabilisation scheme aimed at shielding carriers and passengers from a surge in global fuel costs.

Under the voluntary scheme, participating airlines will pay the fixed free-on-board (FOB) benchmark price plus airport charges, oil company margins and applicable taxes, taking the effective selling price to about ₹115 per litre in Delhi, ₹114.5 in Mumbai and ₹139 in Chennai, according to government officials.

The benchmark compares with the current effective ATF price of about ₹105 per litre in Delhi, which has remained frozen for more than two months after the government allowed only a partial pass-through of soaring global fuel costs triggered by the outbreak of the West Asia conflict in late February.

While participating airlines will pay the fixed price, those not opting for the scheme will be charged prevailing international rate, which is currently around ₹142 a litre.

This is as part of the Union Cabinet-approved ₹10,000-crore fuel price stabilisation programme for airlines that provides financial support to state-owned oil retailers to cap ATF prices and shield carriers from soaring fuel costs linked to the ongoing West Asia crisis.

Under this, a one-time, interest-free advance of up to ₹10,000 crore will be provided to oil marketing companies (OMCs), enabling them to supply jet fuel to scheduled Indian airlines at a fixed price for both domestic and international operations.

Briefing reporters, Rohit Raj, Director in the Ministry of Civil Aviation, said the benchmark has been fixed at ₹86.32 per litre at the FOB level for domestic operations and ₹104.49 per litre for international operations.

04/06/2026 PTI/Business Standard

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