India’s Finance Minister Nirmala Sitharaman announced on March 27, 2026, that the government is taking steps to ensure aviation turbine fuel (ATF) prices remain stable despite global crude oil volatility. The move includes revising export duties and cutting excise on petrol and diesel to cushion domestic consumers.
Amid the ongoing West Asia crisis and rising crude oil prices, the Indian government has introduced measures to stabilize fuel costs. While excise duties on petrol and diesel have been reduced significantly, ATF duties have been revised to balance domestic needs with export pressures. The Finance Minister emphasized that ATF prices will not rise for airlines and consumers.
Policy Measures
Excise Duty Cuts: Petrol excise reduced from ₹13 to ₹3 per litre; diesel excise reduced from ₹10 to zero.
ATF Duty Revision: New excise duty of ₹50 per litre introduced, but exemptions reduce the effective burden to ₹29.5 per litre.
Export Duties: Higher duties imposed on fuel exports to prioritize domestic supply.
Strategic Impact
Ensures airlines are shielded from rising ATF costs, supporting aviation sector stability.
Reduces inflationary pressure on transport and logistics.
Strengthens government’s commitment to consumer protection during global energy crises.
Industry Context
India’s aviation sector is highly sensitive to ATF price fluctuations, which account for nearly 40% of airline operating costs.
Stabilizing ATF prices helps airlines maintain ticket affordability and operational efficiency.
The measures align with India’s broader energy security strategy amid global supply disruptions.
Key Highlights
• Finance Minister confirms ATF prices will not rise
• Petrol excise cut from ₹13 to ₹3 per litre
• Diesel excise reduced from ₹10 to zero
• ATF duty revised to ₹50 per litre, effective burden ₹29.5
• Export duties imposed to safeguard domestic fuel availability
Sources: Times of India, ANI News, Awaz The Voice