Indian government caps ATF at ₹115 per liter in Delhi
India's government just rolled out a plan to cap jet fuel prices, hoping to keep flight costs steady and help airlines deal with the energy crunch in West Asia.
For now, public sector oil companies will sell aviation turbine fuel (ATF) at ₹115 per liter in Delhi, so airlines and passengers both get a break from wild price swings.
Voluntary scheme requires exclusive ATF purchases
This scheme is voluntary and runs for up to three years, or until the advance amount is fully recovered, whichever is earlier.
Prices are fixed but vary a bit depending on the city: ₹114.50 in Mumbai and ₹139 in Chennai.
Airlines joining in have to buy all their ATF from these oil companies.
If oil companies lose money on this deal, they'll be compensated; if they make extra profit due to global price drops, that money goes back into the Consolidated Fund of India.
Move aims to steady ticket prices
Jet fuel makes up about 40% of airline expenses, and recent geopolitical tensions have sent those costs soaring.
This move aims to make things easier for airlines while keeping tickets more predictable for travelers—even when global markets get shaky.