Delhi Sets Fixed ATF Price at ₹115 per Litre Amid Price Volatility
ATF price fixed at Rs 115/litre in Delhi under new mechanism
Asianet Newsable
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The Indian government has established a fixed Aviation Turbine Fuel (ATF) price of approximately ₹115 per litre in Delhi for both domestic and international flights. This decision follows a one-time budgetary support of ₹10,000 crore to stabilize prices amid volatility caused by the West Asia crisis.
- 01The fixed ATF price in Delhi is set at ₹115 per litre for all airline operations.
- 02The previous capped price mechanism limited increases to 25% over the March base price of ₹60.50.
- 03International ATF prices surged from ₹60.50 in March to ₹142 in May 2026 due to the West Asia crisis.
- 04The government has allocated a ₹10,000 crore budgetary support for Oil Marketing Companies to stabilize ATF prices.
- 05ATF constitutes nearly 40% of airline operating costs, potentially rising to 60% during extreme price volatility.
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The Indian government has implemented a new fixed pricing mechanism for Aviation Turbine Fuel (ATF), establishing a selling price of approximately ₹115 per litre in Delhi for both domestic and international airline operations. This change comes as a response to significant price volatility influenced by the ongoing West Asia crisis, which saw international ATF prices rise sharply from ₹60.50 in March to ₹142 in May 2026. Previously, a capped price mechanism limited increases to 25% over the March base price, resulting in a capped price of around ₹104 per litre. The new framework, approved by the Union Cabinet, includes a one-time budgetary support of ₹10,000 crore for Oil Marketing Companies to help stabilize ATF prices. This adjustment is crucial as ATF accounts for nearly 40% of airline operating costs and can escalate to 60% during periods of extreme volatility.
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The new fixed ATF price will provide more predictability for airlines operating in Delhi, potentially stabilizing operational costs.
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