Desk note · industry · Aviation / fuel
Carriers told BusinessLine on 9 October 2026 that oil marketing companies are withholding value-added tax relief linked to June’s discounted aviation fuel sales. Airlines want the Centre to release the funds as surcharges on new tickets rise again.
On 9 October 2026, airline sources told BusinessLine they want funds released from value-added tax relief on aviation turbine fuel. They say oil marketing companies are withholding those amounts to recover losses from selling jet fuel at reduced prices in June 2026, when domestic under-recoveries were running near ₹30 per litre. Carriers argue they were not told at the time that refunds would later be clawed back. Delhi and Maharashtra had cut jet fuel VAT to 7% for six months from June, and the Union Cabinet had cleared up to ₹10,000 crore of support for a price stabilisation fund, though reporting later said the fund lapsed when no airline signed the required agreements.
Ticket prices are built from fuel, airport charges, crew, and financing. When fuel dips briefly and taxes ease, airlines can hold fares steady. If refunds never arrive, the bill shows up later as higher surcharges or trimmed routes. That is what passengers are seeing now: IndiGo, Air India, Air India Express, and Akasa lifted fuel charges on new bookings in the first week of October as global jet fuel prices climbed again. Airlines say passing June’s shortfall to today’s travellers would be unfair, but weak balance sheets may leave little choice without a government-brokered settlement.
If you are booking festive travel, compare total fare including fuel surcharge, not just the base ticket. A dispute between carriers and oil firms does not guarantee refunds to you, but it explains why surcharges moved in October. Watch whether Civil Aviation Ministry talks restart the stabilisation fund with new terms, and whether OMCs confirm how VAT adjustments will be settled. Route cuts would show up as fewer seats on thinner city pairs before they show up in stock prices.
Telecom / IPO
On 22 October 2026, exchange data showed Jio Platforms’ ₹30,213 crore issue had drawn about ₹3.73 lakh crore of total bids by late evening on Day 2, with the retail portion oversubscribed and market commentators citing diverted cash from other listed stocks during the book build.
SEBI / market infrastructure
On 22 October 2026, the Securities and Exchange Board of India proposed letting stock exchanges and depositories fund core-market and regulator-mandated initiatives without prior approval for each ticket, while keeping board oversight and financial safeguards and inviting comments until 12 November.
E-commerce / food delivery
On 22 October 2026, reporting said Flipkart is testing an internal food delivery product called Eat-in by Minutes with more than 8,000 employees in Bengaluru, using Ekart logistics as it prepares to compete with Zomato and Swiggy in meal delivery.
Digital trust / compliance
On 22 October 2026, eMudhra Ltd said its board will voluntarily withdraw from the global SSL/TLS certificate segment after a key-security incident on eight intermediate certificates, citing compliance cost and weak economics while stressing that other digital-trust services continue.
For informational purposes only. Not investment advice. Verify with filings and a licensed adviser.