New Delhi, Nov. 5 -- The government wants airlines to use 1% green jet fuel from 2027, a draft policy shows, and that will cost carriers more at a time when fuel is already hurting them.

The civil aviation ministry's draft, which Mint has reviewed, raises the share to 2% in 2028, 3% in 2029 and 5% in 2030. The green fuel is made from farm waste and used cooking oil, and it costs two to three times as much as regular jet fuel.

Analysts say the hit will be small at first and will grow as the share increases. Airlines are already stretched. IndiGo, India's largest carrier, reported a net loss of Rs.1,879.1 crore in the September quarter, when its fuel bill rose 67.2% to Rs.9,966.8 crore. To get fuel companies to produce more green fuel, th...