Relief for airlines as jet fuel prices drop for first time since West Asia crisis

New Delhi: The Centre has reduced the price of Aviation Turbine Fuel (ATF) for domestic airlines by ₹5 per litre, bringing the rate down to ₹110 per litre with effect from Wednesday.

The reduction comes as international oil prices continue to soften, offering some relief to airlines after weeks of elevated fuel costs.

Separately, the government has revised export duties on petrol, diesel and ATF as part of its fortnightly review mechanism, while leaving excise duty on petrol and diesel sold in the domestic market unchanged.

According to notifications issued by the Ministry of Finance, the Special Additional Excise Duty (SAED) on petrol exports has been fixed at ₹4 per litre, while diesel exports will attract ₹8.5 per litre. The export duty on ATF has been set at ₹7.5 per litre. The revised rates came into effect on 1 July.

The fortnightly review system, introduced on 27 March during the West Asia crisis, is aimed at ensuring adequate domestic supplies of petroleum products by discouraging excessive exports when global prices rise. Export duties are reviewed every two weeks based on the average international prices of crude oil, petrol, diesel and ATF, with the previous revision having taken place on 16 June.

The government has also expanded the list of countries exempt from these export duties. In addition to Nepal, Bhutan, Bangladesh and Sri Lanka, exports by public sector oil companies to Mauritius and the Maldives will now also be exempt.

Despite the changes to export levies, there has been no revision to excise duty on petrol and diesel sold within India, meaning motorists will see no immediate change in fuel prices at the pump.