Jet-fuel (ATF) pricing was freed from the administered mechanism in 2001. As budget airlines and the aviation boom took off, demand climbed from roughly 5.5 million tonnes in 2014-15 toward a record 9.8 MMT estimated for 2025-26 — with a sharp crash during the 2020 pandemic before recovering above pre-COVID levels.
Jet Fuel (ATF)
Jet fuel — aviation turbine fuel, or ATF — is the fuel of India's air-travel boom. Consumption rose from roughly 5.5 million tonnes in 2014-15 toward a record 9.8 MMT estimated for 2025-26, with a sharp dip during the 2020 pandemic before a strong recovery. India actually makes more jet fuel than it uses, so it exports the surplus. The counter shows ATF consumption; figures are estimates and the earliest year is approximate.

| Year | ATF consumption |
|---|---|
| 2014 | 6 MMT |
| 2015 | 6 MMT |
| 2016 | 7 MMT |
| 2017 | 7 MMT |
| 2018 | 8 MMT |
| 2019 | 8 MMT |
| 2020 | 4 MMT |
| 2021 | 5 MMT |
| 2022 | 8 MMT |
| 2023 | 8 MMT |
| 2024 | 9 MMT |
| 2025 | 10 MMT |
Why it matters Jet-fuel demand is a live pulse of the aviation boom — more flights, more airports and more passengers all show up as ATF burned.
- Consumption: ~5.5 MMT (2014-15) → ~9.8 MMT (2025-26, est.)
- India is ATF-surplus — it exports jet fuel
- Fell hard in 2020 (COVID) before recovering above pre-pandemic levels
- Road ahead: easing heavy state taxes and bringing ATF under GST
- Source: PPAC (figures are estimates)
History
An exporter of jet fuel
India's refineries make more ATF than the country burns, so India exports the surplus alongside its other refined products. Jet fuel is about 3.8% of all petroleum products sold, and Delhi — as the biggest aviation hub — is the single largest market.
How it works
Aviation Turbine Fuel (ATF), the kerosene that powers jet engines, is made in the same Indian refineries as diesel and petrol. India makes more than it uses, so it is a net exporter of jet fuel. At home, ATF sits outside GST, so it carries central excise plus widely varying state taxes (VAT) — which can make fuel a huge chunk of an airline's costs and vary sharply from one state's airport to another.
Outlook
The next step is easing the heavy state taxes that make Indian jet fuel among the world's costliest — many states have cut VAT to attract flights, and there is a long-running push to bring ATF under GST for one uniform rate. The bigger horizon is Sustainable Aviation Fuel (SAF) — greener jet fuel from waste and biomass — where India has set early blending targets and refiners are beginning to invest.
The road ahead
The next step is easing the heavy state taxes on ATF (still outside GST) that make Indian jet fuel costly, and growing cleaner sustainable aviation fuel. (Figures on this page are estimates.)
By the numbers
ATF consumption ~5.5 → ~9.8 MMT (2014-15 → 2025-26, est.); ~3.8% of petroleum products; India is ATF-surplus and exports jet fuel. Source: PPAC (estimates).
Source: PPAC — aviation turbine fuel (jet fuel) consumption (MMT); FY15 approximate. India is ATF-surplus and exports jet fuel.