Domestic airlines are facing another increase in aviation turbine fuel (ATF) prices, with rates rising by 5.46 per cent, or ₹6.28 per litre, in the September revision. The latest increase takes ATF to ₹121.28 per litre, up from ₹115 per litre in August.
New Delhi: This is the second consecutive monthly increase in ATF prices. In August, rates rose by ₹5 per litre. The latest revision follows a ₹5-per-litre reduction in July, when the fuel price stood at ₹110 per litre. As a result, the current rate is ₹11.28 per litre higher than in July.
ATF is one of the largest components of airline operating expenses, with fuel accounting for up to around 40 per cent of operating costs. Continued increases in fuel prices could therefore add to the cost burden for domestic carriers and potentially put pressure on airfares if the trend persists.
Fuel prices are reviewed periodically based on international petroleum prices and other market factors. ATF rates can also vary across locations depending on applicable local taxes, including VAT.
Alongside the ATF increase, the price of a 5-kg non-domestic Free Trade LPG (FTL) cylinder was also raised by ₹2, from ₹762 to ₹764.
The latest fuel revision comes as airlines continue to manage elevated operating expenses. Any sustained rise in ATF prices could remain an important factor for carriers when determining costs and ticket pricing in the domestic aviation market.
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