Aviation turbine fuel (ATF) prices have been increased once again for December, marking the third straight month of upward revision. The latest hike, updated by Indian Oil Corporation Ltd. (IOCL) on its website comes at a time when airlines are grappling with elevated operating expenses and fragile margins.

With the new revision effective December 1, ATF prices now stand at:

• Delhi: INR 99,676.77 per kilolitre

• Kolkata: INR 1,02,371.02 per kilolitre

• Mumbai: INR 93,281.04 per kilolitre

• Chennai: INR 1,03,301.80 per kilolitre

Chennai continues to record the highest ATF rate among the four metros, while Mumbai remains the cheapest. The average increase this month is INR 5,113.75 per kilolitre, adding fresh financial strain on carriers for whom fuel constitutes nearly 40% of total operating costs.

ATF, along with cooking gas, is subject to a monthly price review conducted on the first day of each month by state-run oil marketing companies like IOCL, Bharat Petroleum Corporation Ltd. (BPCL), and Hindustan Petroleum Corporation Ltd. (HPCL). These revisions are primarily influenced by global crude oil benchmarks, forex fluctuations, especially movement of the Indian rupee against the US dollar and average import prices during the evaluation period.

Any volatility in international oil markets or currency exchange rates quickly translates into revised domestic ATF tariffs.

The December hike follows a 1% increase in November, when the ATF rate in Delhi was raised by INR 777 per kilolitre to INR 94,543.02. Before that, October saw a more pronounced jump of INR 3,052.5 per kilolitre, around 3.3%.

The only respite in recent months came on September 1, when prices were reduced by 1.4% (INR 1,308.41 per kilolitre). Since then, the trajectory has reversed sharply, with three back-to-back monthly increases.

With ATF prices climbing for the third month in succession, airlines are expected to face renewed margin pressure. Given that fuel accounts for a significant share of operating expenditure, even modest price hikes can impact airlines’ route profitability, ticket pricing strategies, network planning and operating margins, particularly for fuel-intensive long-haul or high-demand routes

For Indian carriers already navigating high costs, capacity expansion, and competitive pricing dynamics, the latest ATF hike is likely to intensify financial challenges as the winter schedule progresses.