Aviation turbine fuel (ATF) prices were reduced by Rs 5 per litre on Wednesday, bringing relief to airlines after weeks of elevated fuel costs triggered by geopolitical tensions in West Asia and rising global crude oil prices.
Following the latest revision, ATF will now cost Rs 110 per litre in Delhi, according to industry sources. The reduction comes as international oil prices have softened amid easing concerns over supply disruptions and improved market sentiment.
The latest cut marks the first decline in jet fuel prices since the conflict in West Asia pushed ATF rates to record highs, significantly increasing operating costs for domestic and international airlines.
Aviation fuel accounts for nearly 35-40 per cent of an airline's operating expenses, making fluctuations in ATF prices a key determinant of profitability and airfares.
ATF prices in India are revised twice every month by state-owned oil marketing companies based on international benchmark prices and the rupee-dollar exchange rate.