ATF Price Cut by Nearly ₹5 Per Litre on July 1, 2026; Will Lower ATF Price Reduce Airfares?

Jet fuel, or Aviation Turbine Fuel (ATF), price was reduced by nearly ₹5 per litre on July 1, 2026, following a decline in international crude oil price. According to the latest price notification issued by state-owned fuel retailers, the ATF price in Delhi has been reduced to around ₹110 per litre. 

The price revision follows a decline in global crude oil amid easing geopolitical tensions in West Asia and improved supply expectations. 

What Led to the Reduction in ATF Price? 

The reduction in ATF price follows a decline in international crude oil price, supported by easing geopolitical tensions in West Asia and improved expectations for global oil supply. 

ATF price revised on the 1st day of every month based on the average international benchmark fuel price and the prevailing rupee-dollar exchange rate. 

Will Lower ATF Price Reduce Airfares? 

Aviation turbine fuel is one of the largest components of an airline's operating costs. The latest reduction in ATF price is expected to ease cost pressures for domestic carriers. 

However, whether airlines pass on the benefit to passengers through lower airfares will depend on several factors, including passenger demand, competition, route economics and overall operating expenses. 

While the reduction provides some relief to airlines, airfare revisions are influenced by multiple commercial considerations beyond fuel costs alone. 

Commercial LPG Price in July 2026 

Alongside the ATF price revision, oil marketing companies reduced the price of a 19-kg commercial LPG cylinder by ₹183.50, effective July 1, 2026. 

However, domestic LPG cylinder price remains unchanged. 

The revisions followed a decline in global crude oil price after easing geopolitical tensions in West Asia. 

Read More: India Cuts Windfall Tax on Diesel, ATF Exports, Raises Petrol Export Duty From Today 

Government Revises Export Duties on Petroleum Products 

Earlier this week, the Central Government revised export duties on petroleum products for the fortnight beginning July 1, 2026, while leaving excise duty on petrol and diesel sold in the domestic market unchanged. 

The revised export duties are: 

The government also expanded exemptions from these export duties for shipments by state-run oil companies to Mauritius and Maldives, in addition to Nepal, Bhutan, Bangladesh, and Sri Lanka. 

The notifications do not affect excise duty on petrol and diesel sold within India, meaning retail fuel price remain unchanged. 

How Are Global Crude Oil Price Moving? 

Oil price edged higher in early trading on July 1 after Iran stated that it would not hold direct talks with US officials, raising concerns over the stability of the ceasefire in West Asia. 

Brent crude futures rose 0.69% to $73.45 per barrel, while West Texas Intermediate (WTI) crude gained 0.91% to $70.13 per barrel. 

Despite the uptick in crude oil price during early trading on July 1, recent declines in international benchmark price enabled oil marketing companies to reduce ATF and commercial LPG price. 

Conclusion 

ATF price has been reduced by nearly ₹5 per litre from July 1, 2026, reflecting softer international crude oil price. On the same day, commercial LPG cylinder price was also reduced, while domestic LPG price and retail petrol and diesel price remained unchanged.