Jet fuel turns costlier as India prepares for summer travel season: ATF rates raised by Rs 5,215/KL

ATF price hike, jet fuel rate March 2026: As India prepares for a summer season, typically characterised by additional demand for travel bookings, aviation turbine fuel (ATF) has become dearer. State-run oil marketing companies (OMCs) Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp have announced upward revisions in their ATF rates, with effect from March 1. Also known as jet fuel, ATF will be sold at Rs 96,638.14 per kilolitre (KL) in the national capital following the revision. This translates to an increase of Rs 5,215 per KL over the existing rate.

The March 2026 hike in aviation fuel rates follows two back-to-back revisions this year, one each in January and February.

According to analysts, the price revision is seen as adding to the burden on airlines and passengers. Jet fuel accounts for the lion's share of airlines' operating costs.

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Delhi ATF rate

In Delhi, the new ATF rate of Rs 96,638.14 per KL marks a month-on-month revision of 5.7 per cent.

Kolkata ATF rate

In Kolkata, the price has been revised to Rs 99,587.14 per KL.

Mumbai ATF rate

In Mumbai, the price stands at Rs 90,451.87 per KL after the revision.

Chennai ATF rate

In Chennai, the revised rate is Rs 1,00,280.49 per KL.

The three PSU OMCs review ATF prices regularly and announce any revisions, aligning them with international benchmarks and forex rates, from time to time. Typically, any changes are announced at the onset of a month.

Price cuts in Jan & Feb 2026

Prior to the hike effective March 1, the ATF rates were reduced by a total of 12 per cent this year. tracking softer Brent crude benchmarks and forex rates.

Analysts say that a bounceback in crude oil rates towards the end of February prompted authorities to raise rates.

Currently, Brent -- the benchmark that influences Indian rates -- is currently trading around the $78 per barrel mark, marking an 8 per cent premium over its December 2025 lows.

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The sharp increase in crude oil was driven by OPEC+ output cuts and geopolitical tensions.

With a raging conflict in the Middle East, analysts peg volatility in crude oil rates going forward.

Besides, a depreciating rupee also raises import costs, prompting retailers to pass on the rates to the public.

Rate hike set to impact aviation space

The March 2026 hike is set to directly impact the aviation sector. Analysts estimate that every Rs 1,000 per KL increase in ATF raises annual expenses of airlines by a few hundred crore rupees.

Additionally, travel season demand creates room for higher airfares during a few months every year.

The latest hike comes just ahead of Holi and summer vacation in schools. Flights between Delhi, Mumbai, Chennai, Goa and Kerala typically see a rise in demand during these months.

Travellers may want to book tickets early to secure lower fares.

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