New Delhi: State-owned Indian Oil Corporation Ltd (IOCL) has signed a letter of intent (LoI) with Akasa Air to explore the future supply of sustainable aviation fuel (SAF), as India’s largest fuel retailer steps up efforts to build a low-carbon fuel ecosystem for the aviation industry.
The agreement was signed on the sidelines of Wings India 2026 and outlines a framework for collaboration between Indian Oil and the country’s fastest-growing airline to support Akasa Air’s sustainability goals through the potential adoption of SAF.
Sustainable aviation fuel is widely seen as a key lever for reducing lifecycle greenhouse gas emissions from air travel and is expected to play a central role in the sector’s transition toward net-zero emissions. However, its adoption in India remains at an early stage due to limited supply and high costs.
Under the LoI, the two companies will evaluate potential SAF volumes, delivery locations and timelines, along with approved sustainable feedstocks and production pathways. Indian Oil said it will leverage its expertise across fuel production, logistics and supply chains to support an early transition to SAF usage.
“This LoI reflects our commitment to scaling low-carbon fuels and supporting our customers in their energy transition,” said Shailesh Dhar, Country Head (Aviation Business) at Indian Oil, adding that the company aims to play a meaningful role in enabling the aviation sector’s shift toward cleaner fuels.
The move comes as Indian oil marketing companies increasingly look to diversify beyond conventional fuels, while airlines face mounting global pressure to cut emissions amid rapid capacity expansion.