Amid fluctuations in global crude oil prices, the government on Tuesday increased the price of Aviation Turbine Fuel (ATF) by 10%, raising it from ₹104.927 per litre to ₹115 per litre. Alongside the hike, authorities introduced a new optional scheme allowing domestic airlines to lock in fuel prices for the next three years at the revised fixed rate. Under this plan, airlines that opt in will be insulated from global fuel price volatility and will continue purchasing ATF at ₹115 per litre for a three-year period, enabling better long-term cost planning and financial stability.
However, participation in the scheme is voluntary. Airlines that choose not to join the scheme will be required to purchase fuel at prevailing market-linked international rates, which currently stand at around ₹142 per litre, exposing them to ongoing global price fluctuations and potential cost pressures. The policy is designed to balance cost stability and market flexibility, giving airlines the choice between fixed pricing certainty and exposure to potential market-driven changes.
