Indian oil corporation has entered into a strategic partnership with Akasa Air to advance sustainable aviation fuel supply in India. The Letter of Intent (LOI) was signed at Wings India 2026, marking a significant step towards reducing carbon emissions in the aviation sector.

Strategic Partnership Framework

The LOI establishes a comprehensive framework for collaboration between Indian Oil Corporation Ltd and Akasa Air to support the airline's sustainability objectives. The agreement focuses on the potential supply of Sustainable Aviation Fuel (SAF), which represents a critical pathway for reducing lifecycle greenhouse gas emissions from air travel.

Sustainable Aviation Fuel Initiative

SAF is expected to play a key role in the aviation sector's transition towards net-zero emissions. The fuel represents an environmentally conscious alternative that can significantly reduce the carbon footprint of air travel operations.

Shailesh Dhar, Country Head (Aviation Business) at Indian Oil Corporation Ltd, emphasized the company's commitment to this initiative: "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."

Implementation and Evaluation Process

Pursuant to the LOI, both companies will collaborate on several key areas to ensure successful implementation:

• Evaluation of potential SAF supply volumes
• Determination of optimal delivery locations
• Establishment of realistic timelines for supply
• Selection and use of approved sustainable feedstocks
• Implementation of certified production pathways

The partnership leverages Indian Oil Corporation's extensive expertise in fuel production, supply chain management, and logistics infrastructure to support Akasa Air's sustainability goals.

Industry Impact and Significance

This collaboration represents a significant development in India's aviation industry's sustainability efforts. As India's flagship national energy major, Indian Oil Corporation's involvement in SAF supply demonstrates the country's commitment to reducing aviation emissions and supporting the global transition to cleaner energy sources.

The partnership with Akasa Air, recognized as India's fastest-growing airline, positions both companies at the forefront of sustainable aviation initiatives in the Indian market. The agreement aligns with broader industry efforts to achieve net-zero emissions and reduce the environmental impact of air travel.

Indian Oil Corporation executive has released projections indicating significant growth in India's fuel demand over the coming years. The forecasts suggest continued expansion in the country's energy consumption, with different growth trajectories for major fuel categories.

Fuel Demand Projections

The company's analysis presents distinct growth patterns for India's primary fuel segments through 2030:

Market Outlook

The projections indicate that gasoline demand is expected to outpace diesel growth, with gasoline showing a potential increase of 5-6% compared to diesel's projected 2-3% growth by 2030. This differential in growth rates reflects evolving consumption patterns in India's transportation and industrial sectors.

These forecasts provide insights into the anticipated trajectory of India's fuel market and may influence strategic planning for energy infrastructure and supply chain management in the coming years.