IndiGo shares, operator of InterGlobe Aviation, will be in focus on Wednesday after state-owned fuel retailers increased aviation turbine fuel (ATF) prices by about 10% while introducing a price stabilisation mechanism that allows domestic airlines to lock in fuel rates for up to three years.
Jet fuel for domestic carriers will now be priced at Rs 115 per litre, compared with Rs 104.927 earlier. Airlines that choose to join the government-backed price stabilisation scheme will be able to secure this rate for as long as three years. Carriers that stay outside the scheme will continue to purchase fuel at market-linked rates, which are currently around Rs 142 per litre, similar to the prices paid by international airlines.
