India sets fixed jet fuel price at 115 rupees per litre

India launched a jet fuel price-stabilization scheme fixing rates at 115 rupees ($1.21) per litre, a 10% increase for local carriers. The government approved a 100 billion rupee fund earlier this month to manage rising costs. Jet fuel accounts for up to 40% of airline operating costs, making price fluctuations a significant factor in carrier expenses.

### Buffering Against Global Energy Volatility Airlines joining the program must pay the fixed 115 rupee rate for up to three years. If global prices fall below this level, the surplus will replenish the state fund, according to three industry sources. Carriers opting out will remain on market-linked prices, which may be higher or lower than the fixed rate.