Chennai, June 10:
A sharp increase in aviation turbine fuel (ATF) prices has pushed jet fuel rates to around ₹115 per litre, following a 10% hike implemented under a new pricing stabilisation mechanism, raising concerns over a possible rise in airfares across India.
According to reports, the revised pricing structure has increased domestic ATF rates from about ₹105 to ₹115 per litre, marking a significant cost escalation for airlines. The adjustment is part of a government-backed stabilisation framework aimed at maintaining predictable fuel pricing over a longer period.
Industry sources say the increase could directly impact airline operating costs, as fuel accounts for nearly 30–40% of total expenses for carriers. With margins already under pressure, airlines may look to pass on part of the additional burden to passengers through higher ticket prices or fuel surcharges.
However, experts note that the actual impact on airfares will depend on market demand, competition among airlines, and seasonal travel trends. While fare hikes are likely in the short term, carriers may also attempt to absorb some of the cost to maintain passenger traffic.
The development comes at a time when India’s aviation sector is recovering from fluctuating fuel costs and rising operational pressures, making the latest ATF revision a key factor in shaping near-term travel affordability.