India has increased aviation turbine fuel (ATF) prices for international carriers by about 5%, marking the second consecutive monthly rise as higher global energy costs continue to weigh on the aviation sector.

State-run oil marketing companies said the price of ATF for overseas airlines has been raised by $76.55 per kilolitre, or roughly 5.33%, bringing the rate in Delhi—home to Indira Gandhi International Airport—to $1,511.86 per kilolitre.

In contrast, the latest revision has kept fuel prices for domestic airlines unchanged.

The move follows a sharp increase on April 1, when jet fuel prices for domestic carriers were raised by 25% to 104,927.18 Indian rupees (about $1,250) per kilolitre, reflecting a broader trend of rising input costs for airlines operating in one of the world’s fastest-growing aviation markets.

Industry sources say the staggered price adjustments reflect efforts by authorities and oil firms to manage volatility in global energy markets, particularly amid supply uncertainties linked to tensions in West Asia.

Although jet fuel prices in India were deregulated more than two decades ago and are generally aligned with international benchmarks, officials have adopted a calibrated approach to avoid passing on sharp increases in a single step.

Under this system, international airlines are charged market-linked rates, while domestic carriers have, for now, been shielded from further hikes, a strategy aimed at balancing airline viability with broader economic considerations.

Fuel typically accounts for a significant portion of airline operating costs, and sustained increases could put pressure on ticket prices and profitability, especially for long-haul international operators.

The latest adjustment underscores the continued sensitivity of the aviation industry to global oil price movements, as airlines navigate a complex recovery environment marked by strong demand but rising operational costs.

Source: PTI/NDTV