The Central Government has introduced a new Special Additional Excise Duty on Aviation Turbine Fuel (ATF), revising the tax structure for the aviation sector. With applicable exemptions factored in, the effective duty stands at ₹29.5 per litre.
The revised duty structure came into force on March 26, 2026, and is expected to impact airline operating costs, as ATF constitutes a significant portion of aviation expenses.
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Industry stakeholders are closely assessing the implications of the move, particularly at a time when global energy prices remain volatile. Any increase in ATF costs typically has a cascading effect on airfares and overall travel demand.
Officials have yet to detail the broader rationale behind the revision, but the move is being viewed as part of ongoing efforts to manage revenue and respond to shifting global fuel dynamics.
