Is Airplane Fuel Really Cheaper Than Petrol? Here’s the Price Difference Explained

Over the past few years, petrol prices in India have climbed sharply, leading many to joke that driving a car now feels as costly as flying a plane. However, in reality, the fuel used in airplanes—known as Aviation Turbine Fuel (ATF)—is actually cheaper per litre than petrol for cars, although airplanes consume far more of it for a single journey.

ATF is a kerosene-based fuel specially refined for use in planes and helicopters with jet engines. While it may look similar to petrol or diesel—or even be colourless—its chemical makeup is different. Additives in ATF prevent freezing at high altitudes and ensure a stable burn inside powerful aircraft engines.

Current Price Comparison

  • ATF Prices: ₹92/litre in Delhi, ₹95.16 in Kolkata, ₹86 in Mumbai

  • Petrol Prices: ₹94.77/litre in Delhi, ₹105.41 in Kolkata, ₹103.50 in Mumbai

Why the Price Gap?
The main reason ATF is cheaper lies in taxation. Like petrol and diesel, ATF is taxed by both central and state governments, but the VAT rates on ATF are usually lower. The central government imposes excise duty, while states levy VAT, and rates vary across states. This lighter taxation is meant to reduce operational costs for airlines, making ATF less expensive per litre despite its specialised refining process.

In short, while flying still costs far more than driving due to fuel consumption and operational expenses, per litre, airplane fuel is actually cheaper than the petrol you fill in your car.