IndiGo shares fell 4.4% after Prime Minister Narendra Modi urged Indians to avoid non-essential foreign travel amid escalating West Asia tensions. At the same time, Brent crude rose toward $86 per barrel, raising expectations of higher Aviation Turbine Fuel costs. With fuel making up nearly 40% of operating expenses, investors also fear potential flight disruptions if the conflict drags on.
IndiGo, SpiceJet and other travel-related stocks tumbled as Prime Minister Narendra Modi urged Indians to avoid non-essential foreign trips for a year. The move hit sector sentiment and expected demand just as crude oil prices surged, lifting aviation turbine fuel costs and squeezing airline margins further.
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Starting today, state-owned oil marketing companies have increased Aviation Turbine Fuel for international airlines by 5%, marking the second consecutive monthly hike. The revision adds $76.55 per kilolitre, taking the Delhi ATF price to $1,511.86 per kl. Domestic airlines, meanwhile, see prices held stable in the same update.
India is bracing for an energy cost shock as crude oil prices near $90. Higher crude and gas imports are expected to strain corporate earnings, squeeze consumer spending, and widen pressure on government finances. While the impact will ripple across sectors, experts flag aviation as especially vulnerable to rising fuel costs, with pain likely to spread further over time.
Spain is urging travelers to lock in flights early as oil prices climb amid the Iran Israel conflict. Higher global fuel costs are expected to raise aviation expenses, with airlines likely passing those costs to passengers through higher airfares in the coming months. Advance bookings could help travelers avoid sudden price increases.
India is rapidly scaling ethanol, a sugar-based fuel, to reduce dependence on imported crude and raise incomes for farmers. Policy shifts are enabling higher ethanol blends for vehicles and even aviation, with plans moving toward E20 and exploring E100. The effort brings agriculture, energy, and transport sectors together for a coordinated energy transition.
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India’s Ministry of Petroleum and Natural Gas has issued the Aviation Turbine Fuel (Regulation of Marketing) Amendment Order, 2026. The update broadens the fuel definition to cover synthetic hydrocarbon blends, drops outdated references, and realigns search and seizure authority with the Bharatiya Nagarik Suraksha Sanhita, 2023. The move is set to strengthen compliance and enforcement across aviation fuel marketing.
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