Jet Fuel Price Jumps In October: Airlines Face Higher Fuel Costs, Chennai Sees Highest ATF Rate

The major Oil Marketing Companies or OMCs have announced a hike in Aviation Turbine Fuel or ATF prices for the month of October, raising the cost by an average of Rs 3,052.5 per Kilolitre.

This increase, which is effective from October 1, marks a further rise in operational costs for domestic airlines, potentially pressuring passenger fares ahead of the festive season.

Following the revision, the price of Aviation Turbine Fuel per Kilolitre in India’s major metro cities is as follows.

In Chennai the prices stand at Rs 97,302.14/KL which is the highest among the four metros. In Kolkata, the prices are at Rs 96,816.58/KL while in Delhi, the price has been hiked to Rs 93,766.02/KL.

In Mumbai, the prices after the upward revision stands at Rs 87,714.39/KL. This adjustment reflects the monthly review of international crude oil benchmarks and foreign exchange rates, which primarily determine domestic jet fuel costs.

The consistent increase in ATF prices is a rising concern for the Indian aviation sector, as fuel typically constitutes approximately 30% to 40% of an airline's total operating expenses.

While the price hike is marginal in absolute terms, continuous rises erode the profitability of carriers, who may choose to pass on the elevated costs to consumers through higher ticket prices.

The latest hike comes just as airlines were preparing for a surge in travel demand associated with the upcoming holiday period.