- Aviation turbine fuel prices cut for second month from Feb 1, 2026, easing costs
- Domestic ATF prices fell by Rs 929.63 per kilolitre, about 1% month-on-month
- International ATF prices declined by around $12 per kilolitre, nearly 1.6%
In contrast to the hike in commercial LPG prices, airlines received a measure of relief as aviation turbine fuel (ATF) prices were cut for the second consecutive month, effective Feb. 1, 2026, easing cost pressures ahead of the Union Budget 2026.
ATF prices for domestic airlines were reduced by an average of Rs 929.63 per kilolitre month-on-month, translating to a cut of nearly 1%, according to data from oil marketing companies. Prices for international operations also declined, with rates falling by around $12 per kilolitre, or roughly 1.6%.
The reduction comes at a time when fuel accounts for 35-40% of an airline's operating costs, making ATF pricing a critical determinant of profitability and ticket pricing.
Revised ATF Prices Across Metros
As per data published by Indian Oil Corporation, ATF prices in Delhi now stand at Rs 91,393.39 per kilolitre. In Mumbai, the rate has dropped to Rs 85,474.63 per kilolitre, while Kolkata is priced at Rs 94,445.62 per kilolitre. Chennai currently has the highest ATF price among the metros at Rs 94,781.99 per kilolitre.
ATF prices are revised on the first day of every month, in line with international crude oil benchmarks, foreign exchange movements, and regional cost factors.
What the Decline Means
The back-to-back reduction in ATF prices is being viewed as positive news for airlines, which have been navigating volatile fuel costs amid fluctuating global energy prices. Analysts say sustained declines could help carriers protect margins or pass on some benefit to passengers, potentially leading to more competitive airfares in the coming months.
With both domestic and international jet fuel prices declining, the cost relief could support airlines during a period of high travel demand and capacity expansion.
Understanding ATF and Its Role
Aviation turbine fuel is a kerosene-based specialised fuel designed for aircraft equipped with turbine engines, including jets and turboprops. Unlike petrol used in cars, ATF is engineered for high-altitude performance, lower volatility, and a higher flash point, making it safer and more efficient for aviation use.
While businesses in the food and hospitality sector are grappling with higher LPG costs following the recent commercial cylinder hike, the decline in ATF prices offers a rare pocket of relief in India's broader fuel pricing landscape.
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