International Airlines Face Rising Fuel Costs
International airlines operating out of India are set to incur higher operational expenses as Aviation Turbine Fuel (ATF) prices for them have increased by over 5% from May 1. This marks the second consecutive monthly hike for international carriers, driven by ongoing volatility in global energy markets and geopolitical tensions in West Asia.
State-owned oil marketing companies have raised ATF prices for international airlines by $76.55 per kilolitre, equating to a 5.33% increase. This adjustment brings the rate in Delhi to $1,511.86 per kilolitre. The move reflects a strategy to align pricing for foreign airlines more closely with international benchmark rates.
Domestic Carriers Shielded from Price Surge
In contrast to their international counterparts, domestic airlines in India have been spared from another ATF price hike this month. Authorities, in conjunction with oil companies, have adopted a calibrated pricing strategy to prevent a sudden and sharp increase in airfares within India, particularly during the busy summer travel season.
Industry sources indicate that this staggered approach aims to cushion Indian carriers and passengers from the full impact of global fuel price volatility. Jet fuel typically accounts for 35-40% of an airline's operating costs in India, making any significant price increase a direct threat to profitability and a potential driver of higher ticket prices for consumers.
Government Revises Export Duties on Petroleum Products
In a related development, the Indian government has also revised export duties on certain petroleum products for the next fortnight, effective May 1. This measure is part of an ongoing effort to balance domestic fuel supplies with export economics.
According to a notification from the Finance Ministry, diesel exports will now attract a Special Additional Excise Duty (SAED) of ₹23 per litre, while Aviation Turbine Fuel exports will incur an SAED of ₹33 per litre. Petrol exports, however, will continue to face zero export duty. These export duty structures are reviewed fortnightly, with adjustments linked to average global crude and refined product prices. India first imposed these export levies on March 27, 2026, amid the escalation of the West Asia crisis and concerns over domestic fuel availability.