ATF price cut by ₹5/litre to ₹110 as oil prices cool; Nayara slashes petrol and diesel rates

India's aviation sector received some relief on Wednesday as the Centre reduced the price of Aviation Turbine Fuel (ATF) for domestic airlines by around ₹5 per litre to ₹110 per litre, marking the first cut since the recent spike triggered by the West Asia conflict. The government also lowered commercial LPG prices by ₹183.50 per 19-kg cylinder, reflecting softer international crude oil prices following easing geopolitical tensions in the region.

The decline in fuel prices comes as global oil markets stabilise after fears of supply disruptions eased with the de-escalation of hostilities in West Asia and the reopening of a key maritime trade route.

Alongside the price revision, private fuel retailer Nayara Energy cut petrol prices by ₹5 per litre and diesel by ₹3 per litre across its network of more than 7,000 fuel stations, becoming the first retailer in more than two years to reduce retail fuel prices.

ATF stabilisation scheme cushions airlines

Industry sources said the revised ATF price of around ₹110 per litre applies to domestic airlines and is below the ₹115-per-litre fixed price offered under the government's recently launched ATF price stabilisation scheme.

Introduced last month, the scheme allows participating airlines to procure jet fuel at a fixed price of ₹115 per litre for up to three years. Under the mechanism, if benchmark ATF prices exceed the base rate of ₹86.32 per litre—equivalent to a retail price of ₹115 after airport charges, oil company margins and taxes—the government will compensate oil marketing companies through interest-free advances. Conversely, when benchmark prices fall below the base rate, the excess amount will be recovered and credited to the Consolidated Fund of India.

It was not immediately known how many airlines have opted into the scheme.

Commercial LPG prices decline; domestic cylinders unchanged

Oil marketing companies also reduced the price of commercial LPG by ₹183.50 per 19-kg cylinder, the first cut this year. The revised price now stands at ₹2,930 per cylinder, down from the record ₹3,113 reached last month amid elevated crude oil prices.

The price of the 5-kg Free Trade LPG (FTL) cylinder was also lowered by ₹13 to ₹808.50. However, the price of the 14.2-kg domestic LPG cylinder remains unchanged at ₹942.

State-owned fuel retailers revise ATF and commercial LPG prices on the first day of every month based on the average international benchmark prices and prevailing foreign exchange rates.

Export duties revised; Nayara cuts retail fuel prices

Separately, the Ministry of Finance revised the Special Additional Excise Duty (SAED) on fuel exports for the fortnight beginning July 1. The export duty has been fixed at ₹4 per litre for petrol, ₹8.5 per litre for diesel and ₹7.5 per litre for ATF, while the Road and Infrastructure Cess remains nil. The revised rates, effective July 1, apply only to exports and do not affect domestic retail fuel prices.

The Centre also expanded the list of countries exempt from these export duties. Besides Nepal, Bhutan, Bangladesh and Sri Lanka, the exemption now includes Mauritius and the Maldives.

In the retail market, Nayara Energy rolled back the fuel price hikes it had implemented after the Iran conflict, reducing petrol prices by ₹5 per litre and diesel by ₹3 per litre across its nationwide network. The company had earlier raised petrol and diesel prices by the same amounts after crude prices surged.

State-run retailers—Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL)—kept pump prices unchanged. In Delhi, petrol continues to retail at ₹102.12 per litre and diesel at ₹95.20 per litre.

Industry sources said Nayara, which operates a 20-million-tonnes-per-year refinery at Vadinar in Gujarat, has completed its refinery turnaround and is now operating at full capacity to cater to domestic demand.