Indian Oil and Akasa Air Sign Pact for Sustainable Aviation Fuel

The adoption of sustainable aviation fuel (SAF) has made a new step in the direction of adoption in India with a new agreement between Indian Oil Corporation Ltd (IOCL) and Akasa Air to investigate the future SAF supply.

The two companies agreed to the Wings India 2026 airshow in Hyderabad to sign a Letter of Intent (LOI) that would develop a roadmap to advance greener air travel in the fast-developing Indian aviation market.

According to the agreement, Indian Oil and Akasa Air will collaborate to evaluate the possible volumes of SAF to be supplied, the place of delivery, schedules and utilization of approved sustainable feedstocks and production routes that are in line with global aviation fuel standards.

This partnership helps Akasa Air in its sustainability and that of the industry at large that is striving to minimize carbon emission. SAF is considered by many prospective markets as one of the most viable short-term solutions to the reduction of lifecycle greenhouse gas emissions associated with jet fuel.

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 “This LOI reflects our commitment to scaling low‑carbon fuels and supporting our customers in their energy transition. By leveraging our expertise across fuel production, supply, and logistics, we aim to play a meaningful role in enabling an early transition to the usage of SAF,” said Shailesh Dhar, Country Head (Aviation Business) at Indian Oil Corporation.

The tie-up is following the pressure on airlines to reduce their carbon footprint by regulators, investors, and passengers. Though the use of SAF in India is still in its infancy, such partnerships are regarded as critical toward the establishment of supply chains, reduction of rates, and the increased availability of sustainable fuel. Provided it succeeds, the framework will precondition the bigger scale of SAF implementation throughout the industry and allow the Indian aviation sector to be closer to the net-zero emission targets.