India launches aviation fuel price stabilisation scheme as airlines eye lower fares

India has introduced a aviation fuel price stabilisation mechanism that will smooth extreme Aviation Turbine Fuel price movements through oil marketing companies. The aim is to give airlines predictable fuel costs, support passenger and cargo connectivity, and reduce the need for fuel surcharges.

Domestic carriers including IndiGo, Air India and Akasa Air are reviewing the possibility of withdrawing the fuel surcharge that was added in March, with a decision expected by the end of the second quarter. A phased or full rollback is being considered, starting with domestic routes before international services.

Separately, Pakistan’s government reduced jet fuel prices by roughly Rs57 per litre, lowering the cost to Rs238.87 per litre. The cut follows broader petroleum price reductions and is expected to ease airline operating expenses and could lead to lower ticket prices for travelers in the region.