Air India, IndiGo, SpiceJet Big Alert: Sharp Jump In Jet Fuel Price in October; Set To Impact Festive Demand

Air India, IndiGo, SpiceJet Big Alert: The prices of jet fuel witnessed another increase on Wednesday, October 1. The oil and marketing companies (OMCs) have announced a hike in aviation turbine fuel (ATF) prices by an average of Rs 3,052 per kilolitre. The surge in ATF prices is likely to hurt the festive season demand and impact the business prospects of aviation companies like Air India, IndiGo, SpiceJet, etc.

Aviation Stocks Under Pressure

InterGlobe Aviation (IndiGo) shares were trading 0.52% lower at Rs 5,565 per share on BSE with a market capitalisation of Rs 1,21,234.59 crore. SpiceJet shares were trading 0.89% higher at Rs 29.38 per share on BSE with a market capitalisation of Rs 3,762.64 crore.

ATF Price Hike

Major OMCs announced surge in aviation fuel cost by an average of Rs 3,052 per KL. The increase marks another jump in operational costs for domestic airlines.

ATF Prices In October

The prices of ATF fuel in India's major metro cities have been revised on October 1. In Chennai, the prices of ATF fuel surged to Rs 97,302.14 KL. Whereas, ATF fuel prices in Kolkata stood at Rs 96,816.58/KL, while in Delhi, the price has been hiked to Rs 93,766.02/KL. With this, the price of ATF fuels remained the highest in Chennai. The aviation turbine fuel prices in Mumbai also surged to Rs 87,714.39/KL.

In August, PSU OMCs have further increased domestic ATF prices by 3% MoM to Rs 92.0/ltr (in Delhi). According to experts, crude oil prices are likely to remain volatile amid geopolitical turmoil and Russian sanctions. The consecutive surge in aviation turbine fuel costs over the past few months is likely to impact the airline's operational costs.

LPG Prices

Starting from October 1st, LPG in India have seen an increase for the first time in the financial year 2025-26. The cost of 19 kg LPG cylinders has risen by Rs 15.5 to Rs 16.5 across major metropolitan areas. This adjustment follows a period from April to September when prices were reduced. Notably, Kolkata and Chennai experienced the most significant price hikes.

Despite these changes, the price of the commonly used 14.2 kg LPG cylinders remains stable and unaffected by this recent increase. This decision ensures that households relying on these smaller cylinders are not impacted financially at this time.

While ATF fuel prices witnessed a rise, the Brent crude prices remained steady in September. According to Emkay Research, " the next big move in the brent crude prices will hinge on how U.S. sanctions and tariff policies unfold in the coming months."

"Lower energy costs are particularly significant for India, where they help cushion inflation and stabilize the broader economy. As energy security moves back into the global spotlight, India's strategy of securing affordable crude supplies underscores the delicate balance between geopolitical shifts and domestic economic priorities," it added.