Page 46 - Policy Economic Report - April 2026

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Government Brings SAF-Blended Aviation Fuel Under ATF Control Order

The Government has notified an amendment to the Aviation Turbine Fuel (ATF) (Regulation of Marketing)
Order, 2001 (ATF Control Order) vide notification dated 17 April 2026. The amendment has been issued
as an administrative measure to bring Aviation Turbine Fuel blended with Sustainable Aviation Fuel (SAF)
under the ambit of the ATF Control Order.

SAF consists of specially processed aviation grade hydrocarbons, that are chemically similar to ATF and
fully compatible with aircraft engines. SAF does not alter the fundamental nature, safety, or performance
of aviation fuel. Inclusion of SAF for aviation use undergoes International Civil Aviation Organization
(ICAO) recognised rigorous testing process for aviation engines as per ASTM International and only after
such extensive procedure, SAF is accepted for use in aviation.

As recognised by ICAO, SAF is a renewable fuel derived from alternative feedstocks such as crops, biogenic
residues, and waste materials, offering significant reductions in GHG emissions. ICAO is implementing
CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) to control emissions from
international flights. Mandatory phase of CORSIA begins from 2027, requiring international flights to
offset emissions above a baseline level. The use of SAF can help reduce these offsetting requirements.
Recognising this global requirement, the Government has already announced indicative blending targets
of SAF in ATF for international flights as 1% in 2027, 2% in 2028, and 5% in 2030.

Earlier, ATF was defined only as petroleum-based fuel meeting BIS specifications. The amendment
expands this definition to also include SAF co-processed alongside ATF as per IS 1571 in petroleum
refineries, and SAF conforming to IS 17081 blended with ATF, meeting IS 1571. This amendment is
essential to keep India aligned with global supply chain of SAF.

SAF required under the CORSIA not only needs to meet strict quality specifications as per extant BIS
stringent specifications (which conform to international specifications), but also must meet CORSIA
sustainability criteria to qualify as CORSIA-eligible fuel (CEF). The amendment to the ATF Control Order is
therefore an enabling provision to operationalise these targets.

Globally, similar steps are being taken by other countries. The European Union and United Kingdom have
introduced SAF blending mandates. In EU, mandate on SAF blending is 2% in 2025, 6% in 2030 and up to
70% by 2050. In UK, mandate is 2% in 2025, 10% in 2030 and 22% in 2040. The United States is promoting
SAF through production incentives. Japan has also a SAF mandate of 10% SAF by 2030. In Singapore,
international flights will be required to use 1% SAF from 2026 and this target goes to 3 – 5% by 2030.

India is committed to green fuel transition, with a focus on reducing carbon emissions, promoting
sustainable fuels like SAF, strengthening domestic production capabilities, and positioning the country as
a key player in the emerging global clean energy ecosystem.

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