The Centre on Wednesday clarified the recent rise in aviation turbine fuel (ATF) prices, stating that the increase for domestic airlines has been capped at 25% to cushion the impact of global energy volatility.
Citing escalating tensions in the Middle East and the closure of the Strait of Hormuz following US-Israeli strikes on Iran, the government described the move as a “partial and staggered increase” aimed at shielding passengers from a sharp spike in airfares.
Govt Steps In to Limit Price Shock
In a post on X, the Ministry of Petroleum and Natural Gas said ATF prices in India have been deregulated since 2001 and are revised monthly based on international benchmarks.
“Due to the closure of Strait of Hormuz and extraordinary situation in global energy markets, price of ATF for domestic markets was expected to increase by more than 100% on April 1,” the ministry said.
To mitigate the impact, public sector oil marketing companies, in consultation with the Ministry of Civil Aviation, implemented only a 25% increase, equivalent to about Rs 15 per litre, for domestic carriers.
“Foreign routes will pay for the full increase in ATF prices consistent with what they pay in other parts of the world,” the statement added.
Moderate Rise Offers Relief to Airlines, Flyers
Jet fuel prices for scheduled Indian airlines have risen by around 8.5% in April, helping avoid a steep rise in ticket prices for most passengers.
In Delhi, ATF now costs Rs 1,04,927 per kilolitre, up from Rs 96,638.14 last month. At the country’s second-busiest aviation hub, prices have climbed to Rs 98,247 from Rs 90,451.87.
The relatively moderate increase is seen as a relief for airlines already under financial pressure, as well as for travellers concerned about fare hikes.
Sharp Spike for Charter, Non-Scheduled Operators
However, the situation is markedly different for non-scheduled, ad hoc and charter operators, who are facing the full impact of global price movements.
For domestic operations in this segment, ATF prices have surged by around 115%, while international operations have seen an increase of approximately 107%.
