New Delhi, May 1: Aviation turbine fuel (ATF) prices for foreign carriers were raised by nearly 5% on Friday, marking the second consecutive monthly increase. Domestic airlines, however, have been spared from any revision, as authorities adopt a calibrated approach to pricing amid global energy market volatility.

State-run oil marketing companies, including Indian Oil Corporation, announced the latest revision in line with elevated international fuel benchmarks. The hike applies exclusively to international operations and foreign carriers, while ATF prices for domestic airlines remain unchanged.

In Delhi, which serves as the benchmark for ATF pricing in India, fuel for international airlines increased by $76.55 per kilolitre, or 5.33%, taking the price to $1,511.86 per kl. This follows a sharp 25% hike on April 1 for domestic carriers, when ATF prices surged to Rs 1,04,927.18 per kl.

Industry sources indicated that rising geopolitical tensions, particularly linked to the Iran conflict, have pushed up global fuel prices. Instead of passing on the entire increase immediately, oil firms and the government are staggering the impact. As a result, international carriers are being charged market-linked rates, while domestic airlines continue to benefit from moderated pricing to cushion cost pressures.

Fuel remains one of the largest cost components for airlines, and any increase in ATF prices has a direct bearing on operating expenses. The latest revision is expected to raise costs for international operators flying to and from India, potentially impacting ticket prices and profitability.

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ATF prices in India have been deregulated for over two decades and are linked to international benchmarks under an agreed pricing mechanism between airlines and oil companies. Oil marketing companies revise ATF prices at the start of every month based on global trends.

With the latest hike, international carriers have now seen fuel costs rise for the second straight month, while domestic airlines continue to operate under relatively stable pricing conditions. Analysts suggest that if global energy prices remain volatile, further adjustments may be on the horizon, with authorities balancing market realities against the need to shield domestic operators from excessive cost burdens.