Sharp drop at the start of the month! Jet fuel prices reduced—will air travel become cheaper now?

Jet Fuel Prices: After revising export duties on petrol, diesel, and ATF on Tuesday, the government has now cut jet fuel prices. However, the prices of petrol and diesel remain unchanged.

Aviation Fuel Prices Cut: The impact of falling crude oil prices in international markets is now visible domestically. Today, July 1, 2026, state-owned oil marketing companies reduced Aviation Turbine Fuel (ATF) prices by approximately ₹5 per liter. With this reduction, the price of ATF in Delhi now stands at ₹110 per liter.

With this reduction, the price of ATF in Delhi now stands at ₹110 per liter. Following the drop in jet fuel prices, a reduction in airfares can also be expected, as ATF costs account for roughly 40–50% of an airline's operating expenses. Naturally, a drop in fuel prices raises the likelihood of lower airfares.

Prices Revised Twice a Month

In India, state-owned oil companies revise Aviation Turbine Fuel (ATF) prices twice a month (at 15-day intervals). These new rates are typically implemented on the 1st and 16th of the month, based on the average price of crude oil in the international market and the rupee-to-US dollar exchange rate. In line with this practice, jet fuel prices have been reduced by ₹5 per liter today. Since jet fuel prices are determined twice a month, airline companies adjust their ticket prices and budgets accordingly.

Will Airfares Drop?

Following the ₹5 per liter cut in ATF prices, there is a possibility that base fares on routes such as Delhi-Mumbai and Mumbai-Bengaluru could be reduced in the coming days. Airlines might reduce the fuel surcharge included in ticket prices, which would make tickets cheaper.

What other changes took place today?

The government has revised export duties on petrol, diesel, and ATF for the two-week period starting July 1. The export duty has now been set at ₹4 per litre for petrol, ₹8.50 per litre for diesel, and ₹7.50 per litre for ATF.

• Today, oil marketing companies reduced the price of the 19-kg commercial LPG cylinder by ₹183.50.
• There has been no change in domestic LPG prices.
• Petrol and diesel prices also remain unchanged.