Aviation Fuel Prices cut down: The effect of falling prices of crude oil in the international markets is now visible in our country also. In fact, today on July 1, 2026, government oil marketing companies have reduced the prices of Aviation Turbine Fuel (ATF) by about Rs 5 per liter. With this decline, the price of ATF in Delhi has now become Rs 110 per liter.

With this decline, the price of ATF in Delhi has now become Rs 110 per liter. After the reduction in the price of jet fuel, now reduction in air fares can also be expected because about 40-50% of the operating cost of any airline is related to the expenditure on ATF. In such a situation, it is obvious that due to fall in its price, there is a possibility of reduction in air fares also.

The price is changed twice a month

In India, government oil companies change the prices of Aviation Turbine Fuel (ATF) twice a month (at an interval of every 15 days). These new rates are implemented on the 1st and 16th of the month of Amun based on the average price of crude oil in the international market and the exchange rate of the rupee against the US dollar. Under this rule, today the price of jet fuel has been reduced by Rs 5 per liter. Since jet fuel prices are fixed twice a month, airline companies also adjust ticket prices and their budgets accordingly.

Will air fares be reduced?

After the reduction in ATF prices by Rs 5 per litre, it is possible that the base fare on routes like Delhi-Mumbai, Mumbai-Bangalore may be reduced in the coming days. It is possible that airlines may reduce fuel surcharge from ticket prices, this will also make tickets cheaper.

What else changed today?

• The government has changed the export duty on petrol, diesel and ATF for the next two weeks from July 1. Now the export duty has been fixed at Rs 4 per liter on petrol, Rs 8.5 per liter on diesel and Rs 7.5 per liter on ATF.
• Today, oil marketing companies have reduced the price of 19 kg commercial LPG cylinder by Rs 183.50.
• There has been no change in the prices of domestic LPG.
• The prices of petrol and diesel have also not been changed.

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Air India: The country’s two largest airlines – IndiGo and Air India are going to cancel about 250 of their domestic flights daily from June. The reason behind this is the skyrocketing prices of Aviation Turbine Fuel (ATF- Jet Fuel) and decline in travel demand. This is putting pressure on the functioning of the airlines.

This reduction in flights is expected to continue from June to August, i.e. even in the summer months. Generally between June and August, the demand for air travel decreases after the summer holidays in schools end. Airlines companies are taking this step to balance this decrease in demand and increased expenditure on fuel. In such a situation, if your flight gets canceled in the meantime, you will be given the option of free date change, alternative route or full refund.

Record jump in jet fuel

Amidst the war between America and Iran and the ongoing tension in the Middle East, the supply of crude oil through the Strait of Hormuz has been affected. Due to this, the price of jet fuel (ATF) has increased from Rs 80000 per kilometer to Rs 1 lakh per kilometer in many cities of India. Due to this, fuel has become costlier by about 25% for domestic flights and by almost 100% for international routes.

Which airlines are reducing flights by how much?

• Air India is cutting its domestic flights by about 22% during June and July. The airline operates around 500 domestic flights daily, and this cut would mean around 110 fewer flights per day and around 800 less per week.

  Similarly, Indigo is also going to cut its domestic flights by 5-7% and international flights by 17%. Including these two, approximately 250 flights will be canceled daily between June and August.

ATF Tax Relief: India’s two largest aviation hubs Delhi and Mumbai have made a major reduction in VAT on Aviation Turbine Fuel i.e. ATF. This decision is expected to provide relief to airlines from rising costs, especially at a time when global fuel prices, weak rupee and operational expenses are rising rapidly.

How much tax reduced in Delhi and Mumbai?

If we talk about tax, Delhi has reduced VAT on ATF from 25 percent to 7 percent. This relief has been implemented for six months. Whereas Maharashtra has reduced VAT on ATF for domestic flights in Mumbai from 18 percent to 7 percent. This decision has come at a time when airlines were struggling with rising fuel prices and had warned the government about increasing costs.

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Fuel crisis increases the difficulties of airlines

The aviation sector is currently facing a huge fuel crisis. The Federation of Indian Airlines (FIA), which includes companies like Air India, Indigo and SpiceJet, had warned the government that many routes were becoming economically unprofitable due to rising fuel costs. According to FIA, earlier fuel cost used to be about 30 to 40 percent of the total expenses of airlines, but now it has increased to 55 to 60 percent.

impact of global stress

The impact of ongoing tensions in the Middle East and supply disruptions around the Strait of Hormuz was also visible on jet fuel prices. A large part of the oil and LNG supply around the world passes through this route. While at the end of February 2026, the price of jet fuel was around $99 per barrel, by May 2026 it increased to around $263 per barrel.

Why are Delhi and Mumbai so important?

According to figures disclosed by Chief Minister Rekha Gupta, Delhi’s Indira Gandhi International Airport handled around 8 crore passengers in 2024-25, while Mumbai Airport handled 5.55 crore passengers in 2025 and recorded a movement of more than 3,31,000 aircraft. Most of the domestic and international flights in the country operate from these two cities. This is the reason why the effect of reduction in tax on fuel will be visible on the entire aviation sector.

Increasing consumption of ATF

The demand for ATF is continuously increasing in India. According to government data, about 764 thousand metric tons of ATF was consumed in the country in February 2026. Whereas in 2025, domestic airlines will carry about 167 million passengers. Amidst such huge demand, even a little relief in fuel prices can prove to be a big saving for airlines.

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Increasing financial pressure on airlines

Airlines are already facing many financial challenges. Increasing lease rentals, shortage of aircraft, technical problems in engines, maintenance expenses and weakness of rupee against the dollar have increased the problems of the companies. Its effect is also visible on the performance of companies. Air India has stopped some international flights like Chicago, Newark and Shanghai, while the number of flights on many routes has been reduced. On the other hand, IndiGo’s net profit fell by about 77.6 percent in the third quarter of FY 2026.

There may be a reduction in fuel tankering

The reduction in ATF tax may also impact the fuel strategy of airlines. Till now many airlines adopted fuel tankering strategy. That is, she used to get more fuel filled at low tax airports so that she does not have to take fuel again at expensive airports. However, this increased the weight of the aircraft and affected the fuel efficiency. Experts believe that due to lower taxes in Delhi and Mumbai, the need for such strategies will reduce.

Will air tickets be cheaper?

There is less possibility of passengers getting cheap tickets immediately after the tax cut. Fares in Aviation Sector: Fares in the sector are not determined only by cost, but demand and supply also play a big role in it. At present, passenger demand remains strong, while flight capacity is limited due to shortage of aircraft and technical problems. In such a situation, airlines will first try to reduce their financial pressure.

States will suffer revenue loss

This decision will also cause loss of revenue to the state governments. Delhi government estimates that it may suffer a loss of around Rs 985 crore due to VAT cut. Maharashtra is expected to suffer a revenue loss of Rs 550 to 600 crore annually. After this, both the governments believe that this step will help in maintaining their cities as strong aviation hubs.

Demand to bring ATF in GST intensifies

Amidst this entire issue, the old demand of the aviation industry has once again intensified that ATF should be brought under the ambit of GST. At present, different VAT is applicable on ATF in different states and airlines are not able to avail the benefit of input tax credit. The industry believes that if ATF is included in GST, fuel costs can be stabilized across the country.

Commercial Gas Cylinder Price Hike: Amid rising energy prices around the world, state-run oil companies have largely protected domestic customers from any immediate impact. However, the prices of commercial cylinders have been increased by Rs 993.

This increase comes just two days after the elections ended in 5 states; The last phase of these elections was held in Bengal on 29 April. The prices of domestic LPG and Aviation Turbine Fuel (ATF) for local airlines remain the same. No changes have been made in these. However, jet fuel prices for international airlines have been increased by 5 percent.

Companies will bear the input cost themselves

Retail prices of petrol and diesel have also been kept stable. According to Indian Oil Corporation (IOC), there has been no change in the prices of major fuels affecting the general public. Oil companies have decided to bear the increased cost of inputs, which also includes the cost of ATF used by domestic airlines.

However, the prices of ATF and some industrial fuels for international aviation companies have been increased in line with global standards. Here, this increase in the prices of commercial LPG cylinders is effective from May 1. The price of 19 kg commercial cylinder in Delhi has now become Rs 3,071.50.

Will inflation increase now?

It is almost certain that inflation will increase due to the huge increase of Rs 993 in the prices of commercial gas cylinders. This will affect your pocket. According to a media report, food delivery platform Eternal said in its recent earnings call that the recent LPG shortage in some parts of India has not had any significant impact on its growth or profits so far. Despite less supply at the local level, the demand on their platform remains stable.

Responding to a question about the possible impact in the current quarter, the company’s founder Deepinder Goyal said that although some restaurants in the affected areas faced some temporary supply issues, the overall business at the platform level continued without any interruption. “There has been no significant impact so far,” he said.

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What will be the effect?

• Due to increase in the price of commercial gas cylinders, the expenses on cooking food in restaurants, dhabas and hotels will increase. Due to this the prices of thali and snacks may increase.
• In this wedding season, due to this increase in the cost of making sweets and bakery items, you will have to pay more for cakes and biscuits than before.
• Expenditure on tiffin service may increase for office goers and students.
• Prices of items ranging from tea-samosas to chaat-pakodas may increase because due to increase in costs, small vendors may either increase prices or reduce quantities.

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Lufthansa Airlines Cuts Down Flights: Amid the US-Iran war, there is a fuel shortage all over the world. Due to this, its prices are increasing day by day, the effect of which is now visible in the aviation industry as well. While some time ago there was news of layoff by one of the airlines, now there are reports that Lufthansa Airlines has also decided to cancel thousands of its flights.

20 thousand flights will be canceled
Germany’s most prominent and largest airline Lufthansa, which has been providing its services in more than 100 countries for years, seems to be going through difficult situations now. There are reports that the airlines have decided that they are going to cancel 20 thousand of their flights. In this summer season, these airlines have decided to cancel flights on their short routes. This decision has been taken due to the rising prices of fuel (airlines turbine fluid) put in the planes.

Will there be savings from this step?
This step taken by the airlines will result in a marginal reduction of less than 1% in the group’s total capacity, in terms of Available Seat Kilometer (ASK). However, this will have a significant impact on costs. Lufthansa estimates that there will be a saving of more than 40,000 metric tons in jet fuel by October.

Passengers will have to face problems
The first phase of this change has started. Till May 31, about 120 flights are being canceled every day and the affected passengers have been informed about this. Many routes have been temporarily removed from the schedule of this airline. However, due to this step of the airlines, passengers will have to face some problems. But considering the current circumstances, the management has taken this decision. More changes can be seen in the coming times.

US-Iran War: There has been tension between Iran and America for a long time, but now the announcement of a two-week ceasefire between the two countries has created a stir in the global market. Due to the ongoing tension for a long time, the whole world was troubled by inflation and supply chain problems, but now this decision has raised hopes of relief. According to reports, as soon as the news of reducing tension between the two countries came out, its biggest and positive impact has been on the crude oil market. There has been a decline of 13 percent to 17 percent in the prices of crude oil in the international market.

Homurz Strait plays an important role in this development, which is considered the main route for the supply of about 20 percent of the world’s oil and LPG. There was a danger on this route due to tension with Iran, but now after the ceasefire, the hope that the situation will become normal has increased. Due to smooth supply, energy prices start falling, which will impact the global economy and will also benefit countries like India, which import most of the oil they need. They can get direct benefit from this.

There will be a decline in the prices of petrol and diesel

If we look from India’s perspective, the first relief can be seen in the prices of petrol and diesel. But the change in prices in India does not happen immediately, because oil companies also take into account taxes and past losses. If still, international prices remain low then relief may come in the next 7 to 10 days. Not only here but good news can also be received on the LPG front.

LPG had become expensive due to supply disruption due to the ongoing tension with Iran, due to which the prices of domestic and commercial cylinders increased, but looking at the latest situation, it seems that if imports become cheaper then the prices of domestic LPG cylinders may come down. Due to this, food items in hotels and dhabas can also become cheaper.

This stuff can be cheap!

• petrol and diesel
• Vegetables and Fruits
• cooking oil
• pulses
• food items
• smart fone
• laptop-pc
• TV
• refrigerator
• washing machine
• vehicles
• clothes coming from abroad

There may be change in the price of air tickets

This news can also be a relief for air passengers. Because due to low price of crude oil, Aviation Turbine Fuel (ATF) becomes cheaper, which is a major part of the cost of airlines. In such a situation, there is a high possibility that the prices of air tickets will reduce in the coming time. The fall in oil prices also affects the everyday life of common people. Due to cheaper diesel, transportation costs reduce, due to which vegetables, milk, grains and other essential goods can become cheaper. Apart from this, the cost of things like plastic, packaging, tires and synthetic clothes is also expected to reduce.

However, it is important to understand that the effect of these changes is not immediately visible. It may take 1 to 3 weeks for the supply chain to normalize and the new prices to be implemented. Also, this ceasefire is temporary at present. If this turns into permanent peace and the government also gives relief in tax, only then the general public will be able to get its full benefit.

Price Rise in Air Travel: There has been a huge jump in the fares of flights from Delhi to London, Dubai and New York. Due to the closure of West Asia’s airspace after the Iran-Israel-America conflict, airlines are having to fly on long routes. ATF prices are at all time high. Which has a direct impact on ticket prices.

If we look at the fare from Delhi to London Heathrow on the ticket booking website, the non-stop ticket in economy class is shown as ₹ 1,49,479. Business class fare has gone up to ₹ 1,79,354. Even for one-stop flights, starting from ₹ 1,32,353 in economy. Before the West Asia conflict, the average economy fare on Delhi-London used to be between ₹ 45,000 to ₹ 65,000, which means now the fare has more than doubled.

Prices of foreign flights are skyrocketing

The route to Dubai is no longer as easy as before. On IndiGo’s website, the economy fare for Delhi-Dubai is shown at ₹28,762 while the business class has reached ₹55,879. Before the West Asia tension, the normal fare for Delhi-Dubai was available between ₹ 12,000 to ₹ 20,000. Fares from New York (JFK) to Delhi on IndiGo’s website start from $2,390 – approximately ₹2,05,000, that too with 1 stop. Tickets from Delhi to New York are available from ₹ 1,26,181, but with 2 stops. Under normal circumstances, the fare between Delhi-New York used to be between ₹ 55,000 to ₹ 80,000.

Europe route flights expensive and canceled

Fares on routes to Europe increased by more than 40 percent in the first week of March. More than 700 flights were canceled in the initial phase of the conflict. The price of Aviation Turbine Fuel i.e. ATF increased from $85-90 per barrel to $150-200 per barrel. Brent Crude reached $105 per barrel by March 26, which was $72 per barrel before the conflict.

Iran War Price Rise in Air Travel: The ongoing war-like situation between Iran and Israel-America is now directly impacting the pockets of the common traveler in India. Due to disruption in the supply of crude oil, the prices of aviation turbine fuel ATF have increased and airlines have also imposed fuel surcharge and the result is visible. Flight tickets on almost every major route in the country have become costlier by 30-35 percent in the last few days.

Recently ATF for domestic airlines has increased by 8.5 percent. ATF accounts for 35 to 45 percent of the total operating expenses of any airline, so as soon as fuel becomes expensive, the ticket price goes straight up, then see how much its impact is on the public.

How much before the flight from Delhi, how much now?

If we look at the booking of air fares for April 16, the cheapest non-stop ticket from Delhi to Goa currently starts at ₹ 8,384. The same route is running between ₹9,038 to ₹11,098 on IndiGo. A few weeks ago, the same ticket was available for between ₹ 4,500 to ₹ 6,000 and if the booking for the next day goes to Delhi, then this rate can be seen even up to ₹ 15 thousand. The condition of Delhi to Bangalore is even worse, on 16th April the fare has reached ₹ 12,596 and in this too the fare for the next day comes to ₹ 15 to 17 thousand.

How much will the fare cost from Jaipur?

There has been an increase of up to 30 per cent on the Jaipur to Bengaluru route, with fares ranging from minimum ₹ 11,568 to maximum ₹ 24,129. Jaipur to Ahmedabad ranges from ₹7,036 to ₹12,443, 15 percent more than last year. Jaipur to Mumbai is costlier by about 10 percent from ₹ 6,305 to ₹ 13,481. Jaipur to Goa ₹13,128 and the demand is so high that it has become difficult to tell the upper limit.

Ranchi and Nagpur passengers also worried

The fare from Ranchi to Delhi which was normally ₹ 8,000-₹ 10,000, has now reached ₹ 12,000-₹ 15,000. Mumbai ticket has become ₹14,000-₹16,000. Kolkata is running between ₹8,000-₹10,000 and Hyderabad ₹10,000-₹13,000. The fare from Nagpur to Delhi jumped from ₹10,228 to ₹13,495 in just one day. Whereas a few weeks ago the same ticket was available for ₹5,500-₹6,000.

The fare from Chandigarh to Bangalore was ₹ 12,000 till March 31, which has now reached ₹ 16,000. The ticket from Chennai to Hyderabad which was usually available for ₹ 6,000 was sold for up to ₹ 19,000 this weekend. Kochi ticket jumped three times from ₹4,000 to ₹18,000.

IndiGo has imposed a fuel surcharge on all domestic and international tickets from March 14, ranging from ₹425 to ₹2,300 per seat, depending on the route. Air India and Air India Express implemented fuel surcharge of ₹399 on domestic tickets from March 12. Akasa Air has also increased its surcharge from March 15.

Fuel surcharge also extra recovery

IndiGo has implemented a new surcharge structure from April 2. On domestic routes, additional charges will range from ₹ 275 to ₹ 950 depending on the distance. Air India and Akasa Air have also implemented similar surcharges. On short routes like Delhi to Lucknow, you will have to pay extra ₹ 275, Mumbai-Kolkata ₹ 600, Bengaluru-Hyderabad ₹ 800 and Chennai ₹ 950 extra.

There is no relief in international flights. Fuel surcharge of ₹ 3,000 to ₹ 5,000 is applicable on Gulf and Middle East routes and up to ₹ 10,000 for Europe-UK. Unless the Iran crisis subsides and crude oil supplies normalize, there is no hope of a fall in air fares and the government has given partial relief to domestic airlines. The entire ATF burden will not be passed on to passengers, but there is no such shield on international routes. At present, the sooner you book tickets, the better.

Due to the Middle East crisis, Indigo has announced to increase fuel surcharge for domestic and international flights. The impact of the sharp rise in the prices of ATF i.e. Air Turbine Fuel has now directly reached the pockets of air passengers. Amidst the pressure of expensive fuel, the country’s largest airline IndiGo has again changed its fuel charge. Now the new rates will be applicable on all new bookings made from April 2, whether domestic or international travel. Earlier, a flat fuel charge of ₹ 425 was applicable on all domestic routes, now it has been decided on the basis of distance.

Charge ₹ 275 for journey up to 500 kilometers

₹400 for 500 to 1000 kilometers

₹600 for 1000 to 1500 kilometers

₹800 for 1500 to 2000 kilometers

Fuel charge of ₹ 950 will have to be paid for flights of more than 2000 kilometers.

There has been some relief on short routes, but the expenses for long distance passengers have increased. Fuel Charge was imposed for the first time on March 14, but due to the ongoing tension in the Middle East and rising fuel prices, the airline had to revise it again. This is the second amendment in just three weeks. Fuel Charge was imposed for the first time on March 14, but due to the ongoing tension in West Asia and rising fuel prices, the airline had to revise it again.

The government has intervened on domestic flights, which has provided some relief to the passengers. The Petroleum Ministry and Civil Aviation Ministry have allowed airlines to pass only a partial increase of up to 25 per cent so that there is no sudden jump in ticket prices. The picture is completely different on international flights. Here no limit has been set by the government due to which there has been a sharp increase in fuel charge.

Multifold increase in international routes in three weeks

On March 14, fuel surcharge was fixed at around ₹ 900 for Middle East, ₹ 1,800 for South Asia and China, ₹ 2,300 for Europe. Now from April 2, you will have to pay fuel charge of ₹ 3,000 to ₹ 5,000 for Middle East, ₹ 3,500 to ₹ 5,000 for South Asia and China, ₹ 7,500 for Turkey-Greece and ₹ 10,000 on Europe route. In just three weeks, fuel charges for international travel have increased three to four times.

Fuel charge will affect tickets

This increase in fuel charge will have a direct impact on the total price of the ticket. Especially in international and long distance flights, passengers will now have to pay more than before. The airline says that it has not passed the entire burden on the passengers, but if ATF prices continue to rise like this, there may be a further increase in airfare in the future. According to IATA’s Jet Fuel Monitor, fuel prices in this region have increased by more than 130 percent in the last one month. On international routes, the price of ATF has more than doubled in a month.

All this has happened at a time when the Petroleum Ministry and the Civil Aviation Ministry have jointly decided that only a partial increase of 25 percent will be given to airlines for domestic operations. For this reason, IndiGo has not put the entire burden on the passengers and has fixed different fuel charges according to the distance.