New Delhi: India’s rapidly growing aviation sector is taking a significant step toward sustainability as Indian Oil Corporation (IOC) and Akasa Air ink a major agreement to supply Sustainable Aviation Fuel (SAF). This eco-friendly fuel is designed to reduce environmental impact compared to conventional jet fuel.
A Strong Move Towards Green Fuel
Globally, airlines and fuel suppliers are actively preparing for a low-carbon future. In line with this trend, IOC and Akasa Air have signed a Letter of Intent (LOI) during Wings India 2026 in Hyderabad. The agreement lays the groundwork for sourcing and supplying SAF to help Akasa Air meet its sustainability goals.
With India’s aviation market expanding rapidly, airlines face increasing pressure from regulators, investors, and customers to lower their carbon footprint. The partnership is seen as a key step in enabling the sector to move toward net-zero emissions.
Indian Oil’s Perspective
Shailesh Dhar, Country Head (Aviation Business) at IOC, stated, “This LOI reflects our commitment to promoting low-carbon fuels and supporting our customers in their energy transition. By leveraging our expertise in fuel production, supply, and logistics, we aim to facilitate the initial adoption of SAF in India.”
The collaboration will assess potential supply volumes, delivery locations, timelines, and the use of sustainable feedstocks and production pathways. All processes will adhere to global aviation and fuel standards.
What is SAF?
Sustainable Aviation Fuel is produced from renewable sources such as used cooking oil or plant-based materials. Compared to traditional jet fuel, SAF emits significantly lower carbon dioxide, helping reduce the environmental impact of air travel. While still in its early stages in India, SAF adoption is considered one of the most practical solutions for reducing greenhouse gas emissions from aviation.
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