Summer travel pushed petrol consumption growth to 8.8 percent in May from a year earlier, compared with April’s 4.6 percent increase. India consumed 3.76 million tonnes of petrol in May 2025, versus 3.46 million tonnes in May 2024 and 3.45 million tonnes in April 2025.
Currently, ATF is outside the ambit of GST and attracts two tax rates -- an excise duty, which is levied by the central government and a Value Added Tax (VAT) that varies from state to state.
Airlines have raised concerns that setting a mandatory SAF blending target for domestic flights would led to a significant rise in costs for the carriers, which would translate to a steep rise in ticket prices for passengers.
Globally, the aviation sector contributes to around 12 per cent of carbon dioxide emissions from transportation. SAF could help reduce these emissions, as compared to conventional jet fuel.
Earlier on July 31, special additional excise duty (SAED) or windfall tax was lowered by 34.3 percent to Rs 4,600 per tonne on crude oil from Rs 7,000 while tax on diesel and ATF was left unchanged at zero
This is second straight monthly increase in jet fuel rates
While Goa and Andhra Pradesh have increased VAT on jet fuel, around 13 major airports in India have increased the user development fees (UDF), a levy designed to bridge revenue shortfall and ensure fair returns for airports.
InterGlobe Aviation's yield per passenger rose to Rs 5.24 in the June quarter from Rs 5.18 a year ago. However, its yield per passenger in Q2FY24 stood at Rs 4.44.
Jet fuel and natural gas are more likely to be included under GST than petrol and diesel, given their minimal revenue impact on states.
This is the third straight monthly reduction in LPG rates. The price was on May 1 reduced by Rs 19 per cylinder and by Rs 30.5 on April 1.
Thirty-one states and union territories have already reduced VAT on aviation turbine fuel to between 1 and 5 percent. Aviation ministry sources say the remaining five will also reduce VAT in the near future, lifting the burden of high costs on airlines.
In Mumbai and Chennai, ATF prices for domestic airlines has been hiked to Rs 94,809/kl from Rs 94,246/kl and Rs 1,05,399/kl from 1,04,840.19/kl, respectively
The tax on diesel will increase to Rs 1.50/litre from nil. Further, SAED on petrol and ATF will continue to be nil.
Jet Fuel, also known as aviation turbine fuel (ATF), has been on the rise in 2023, with prices rising all the way until Rs 1.12 lk/kl on September 2023, the highest since December 2022.
The levy on jet fuel too has been lowered to Rs 1.06 lakh per kilo litre (kL) from Rs 1.11 lakh/kL.
Indian airline companies are already battling many challenges and a further increase in ATF prices coupled with the fall in rupee value can make the going tougher.
Jet fuel (ATF) prices increased by 5%, marking the fourth consecutive monthly rise since July, while commercial cooking gas (LPG) rates surged by Rs 209 per 19-kg cylinder, reflecting international benchmark trends.
This the third straight month of hike in jet fuel prices and coincides with the festival season when air travel picks up. In the last three months, ATF prices have gone up by approximately 24 percent
The Special Additional Excise Duty (SAED) or duty on export of diesel will be hiked to Rs 5.50 per litre from Re 1 per litre at present.
The windfall tax on petrol and aviation turbine fuel has been left unchanged.
Akasa Air currently operates more than 900 flights every week and also plans to start international operations by the end of 2023.
The ailrine was waiting for an opportunity to increase flights on some of its most profitable routes out of the southern states but was struggling to get slots for the same. Now that Go First has filed for bankruptcy, Akasa Air will aggressively bid for the slots vacated by the former.
Civil Aviation Minister Jyotiraditya Scindia intervened as airfares touched the skies. Besides, the government has been helping airlines negotiate for temporary slots at airports that witness heavy traffic.
Windfall tax, also referred to as the special additional excise duty, was already nil on aviation turbine fuel (ATF), petrol and diesel. The same has been left unchanged.
The airline has partnered with DreamFolks Services, an airport lounges access aggregator, to offer their customers access to lounges for a fee when booking their ticket. Flyers can get lounge access up to 12 hours before departure, the airline said in its press release.