State-owned oil marketing companies have increased the price of Aviation Turbine Fuel (ATF) by Rs 6.28 per litre. This is the second consecutive month jet fuel prices have increased. With the latest price increase, aviation fuel rates have risen to Rs 121.28 per litre from Rs 115, representing a jump of 5.46 per cent. ATF prices have risen sharply since the escalation of the Middle East conflict in early 2026.
"ATF (Aviation Turbine Fuel) prices for domestic airlines increased by Rs 6.28/litre to Rs 121.28/litre from Rs 115.00," state-run Indian Oil Corporation (IOCL) sources were quoted as saying by ANI.
This is the second consecutive month when ATF prices for domestic airlines have been hiked. The prices were increased by Rs 5 per litre on August 1, 2026. Earlier in July, ATF prices were reduced by Rs 5 per litre.
Will flight travel get costlier?
ATF accounts for about 35-40 per cent of an airline's overall operating expenditure in India, making jet fuel prices a key cost for domestic carriers. Higher ATF prices are expected to increase operating costs for airlines. Higher fuel prices can eventually lead to higher airfares. However, air ticket prices are also influenced by factors such as passenger demand, competition among carriers, and seat availability.
Commercial LPG rate rises Rs 9.50
Meanwhile, commercial LPG prices have increased from Rs 2,738 per 19-kg cylinder to Rs 2,747.50. The price of the 5-kg market-priced cooking gas LPG cylinder, called 5-kg FTL, has also been increased from Rs 762 to Rs 764.
The rate hike follows two straight monthly reductions - a steep Rs 192 per 19-kg cylinder cut on August 1 and a Rs 183.5 cut on July 1.
Govt reduced windfall gains tax
Earlier in August, the government had cut windfall gains tax on exports of petrol, diesel and ATF for the fortnight beginning August 15.
The rate of special additional excise duty (SAED) on ATF exports was set at Rs 19.5 per litre, down from Rs 22 per litre. SAED on diesel exports was reduced to Rs 24 per litre, from Rs 25.5 per litre.
Amid escalating tensions in West Asia, the government imposed an export duty on diesel and ATF on March 27 and revised the rate every fortnight.
