ATF Prices Surge Again: What This Means for Air Travel in India
Aviation Turbine Fuel (ATF) prices have once again seen a significant increase in December 2025, marking the third consecutive monthly hike. Oil marketing companies have raised rates by an average of Rs 5,113.75 per kilolitre, adding fresh cost pressure for Indian carriers. Fuel accounts for nearly 40 per cent of operating expenses for these airlines, making this price surge particularly concerning.
With the latest revision, ATF is now priced at: - Delhi: Rs 99,676.77 per kilolitre - Kolkata: Rs 1,02,371.02 per kilolitre - Mumbai: Rs 93,281.04 per kilolitre - Chennai: Rs 1,03,301.80 per kilolitre
The upward trend in ATF prices has persisted over the past three months. In November, ATF prices rose by about 1 per cent after a Rs 777 per kilolitre increase, pushing the Delhi benchmark to Rs 94,543.02 per kilolitre. In October, prices were raised by Rs 3,052.5 per kilolitre, or 3.3 per cent. Prior to this, rates had been cut by 1.4 per cent on September 1.
State-run oil marketing companies, including Indian Oil Corporation, Bharat Petroleum Corporation Ltd, and Hindustan Petroleum Corporation Ltd, revise ATF and LPG prices on the first day of every month. These revisions are based on global benchmark rates and currency movements. Despite the hike in ATF prices, retail petrol and diesel prices have remained unchanged. The last adjustment for petrol and diesel came in mid-March last year, when rates were cut by Rs 2 per litre ahead of the general elections.
Aviation Turbine Fuel (ATF), commonly known as jet fuel, is a specialized, high-quality petroleum-based fuel designed to power aircraft with gas-turbine engines, including jet engines, turboprops, and turboshaft helicopters. It is a refined kerosene or a blend of kerosene and gasoline, adhering to stringent quality and safety standards. The recent price increases are likely to have a significant impact on the aviation industry, potentially leading to higher airfares and operational costs for airlines.
