Why international airlines will pay more for jet fuel in India from May 1
Industry sources said the government and oil companies chose a staggered approach after crude oil and fuel prices jumped sharply due to geopolitical tensions in West Asia.
- May 1, 2026,
- Updated May 1, 2026 7:25 PM IST
India has raised Aviation Turbine Fuel (ATF) prices for international airlines by over 5 per cent from May 1, marking the second straight monthly increase as global energy markets remain volatile amid the ongoing West Asia crisis. However, domestic airlines have been shielded from another hike, with oil companies and the government opting for a calibrated pricing strategy to avoid a sharp rise in airfares within India.
At the same time, the Centre has revised export duties on diesel and ATF for the next fortnight, continuing its effort to ensure adequate domestic fuel supplies while balancing export economics.
ATF prices for international airlines rise again
State-owned oil marketing companies increased ATF prices for international carriers by $76.55 per kilolitre, or 5.33%, taking the rate in Delhi to $1,511.86 per kl.
Don't miss | Fuel export duties reset from May 1: Diesel at ₹23/litre, ATF at ₹33, petrol stays duty-free
This comes after a sharp increase in April, when ATF prices for domestic airlines were raised by 25% to ₹1,04,927.18 per kl. Despite the latest global surge, domestic carriers have been spared another increase this month.
Industry sources said the government and oil companies chose a staggered approach after crude oil and fuel prices jumped sharply due to geopolitical tensions in West Asia. The aim is to reduce the immediate burden on Indian airlines and passengers.
Why domestic airlines were spared
ATF prices in India are technically deregulated and linked to international benchmark rates. However, officials said the current global volatility could have led to the steepest-ever hike in jet fuel prices if fully passed on to domestic airlines.
Instead, authorities appear to be cushioning Indian carriers from sudden cost spikes, while foreign airlines operating international routes are being charged closer to market-linked rates.
Must read | LPG price hike: Commercial gas cylinder rates up by ₹993; check city-wise prices
Fuel accounts for nearly 35-40% of an airline’s operating cost in India. Any sharp increase in ATF prices directly affects profitability and often leads to higher ticket prices.
By moderating domestic ATF prices, the government is attempting to prevent a sudden jump in airfare inflation during the busy summer travel season.
Export duties on diesel and ATF revised
Separately, the government revised export duties on petroleum products for the next fortnight beginning May 1.
According to the Finance Ministry notification:
- Diesel exports will attract a duty of ₹23 per litre under Special Additional Excise Duty (SAED)
- Aviation Turbine Fuel exports will attract ₹33 per litre SAED
- Petrol exports will continue to face zero export duty
The export duty structure is reviewed every fortnight and linked to average global crude and refined product prices.
India first imposed export levies on petrol, diesel and ATF on March 27, 2026, following the sharp escalation in the West Asia crisis and concerns over domestic fuel availability.
India has raised Aviation Turbine Fuel (ATF) prices for international airlines by over 5 per cent from May 1, marking the second straight monthly increase as global energy markets remain volatile amid the ongoing West Asia crisis. However, domestic airlines have been shielded from another hike, with oil companies and the government opting for a calibrated pricing strategy to avoid a sharp rise in airfares within India.
At the same time, the Centre has revised export duties on diesel and ATF for the next fortnight, continuing its effort to ensure adequate domestic fuel supplies while balancing export economics.
ATF prices for international airlines rise again
State-owned oil marketing companies increased ATF prices for international carriers by $76.55 per kilolitre, or 5.33%, taking the rate in Delhi to $1,511.86 per kl.
Don't miss | Fuel export duties reset from May 1: Diesel at ₹23/litre, ATF at ₹33, petrol stays duty-free
This comes after a sharp increase in April, when ATF prices for domestic airlines were raised by 25% to ₹1,04,927.18 per kl. Despite the latest global surge, domestic carriers have been spared another increase this month.
Industry sources said the government and oil companies chose a staggered approach after crude oil and fuel prices jumped sharply due to geopolitical tensions in West Asia. The aim is to reduce the immediate burden on Indian airlines and passengers.
Why domestic airlines were spared
ATF prices in India are technically deregulated and linked to international benchmark rates. However, officials said the current global volatility could have led to the steepest-ever hike in jet fuel prices if fully passed on to domestic airlines.
Instead, authorities appear to be cushioning Indian carriers from sudden cost spikes, while foreign airlines operating international routes are being charged closer to market-linked rates.
Must read | LPG price hike: Commercial gas cylinder rates up by ₹993; check city-wise prices
Fuel accounts for nearly 35-40% of an airline’s operating cost in India. Any sharp increase in ATF prices directly affects profitability and often leads to higher ticket prices.
By moderating domestic ATF prices, the government is attempting to prevent a sudden jump in airfare inflation during the busy summer travel season.
Export duties on diesel and ATF revised
Separately, the government revised export duties on petroleum products for the next fortnight beginning May 1.
According to the Finance Ministry notification:
- Diesel exports will attract a duty of ₹23 per litre under Special Additional Excise Duty (SAED)
- Aviation Turbine Fuel exports will attract ₹33 per litre SAED
- Petrol exports will continue to face zero export duty
The export duty structure is reviewed every fortnight and linked to average global crude and refined product prices.
India first imposed export levies on petrol, diesel and ATF on March 27, 2026, following the sharp escalation in the West Asia crisis and concerns over domestic fuel availability.