Domestic Airlines See 8.5% Jet Fuel Hike, International Carriers Face More Than Double Increase
Global oil price surge amid Middle East tensions triggers historic ATF increase, while domestic carriers see moderate 8.5% rise.
New Delhi, Apr 1: The price of Aviation Turbine Fuel (ATF), commonly known as jet fuel, crossed the Rs 2 lakh per kilolitre mark for the first time on Wednesday, reaching a record Rs 2.07 lakh per kl. This surge mirrors the spike in global crude oil prices following escalating tensions in West Asia.
For domestic airlines, the increase has been capped at 8.5%, reflecting a government-led effort to insulate local air travel costs from the international price shock. Other carriers, including non-scheduled, ad hoc, and charter airlines, face a more than doubling of ATF rates, rising 114.5% to Rs 2,07,341 per kl.
ATF in India has been deregulated since 2001 and is aligned with international benchmarks. Industry sources said that the Middle East conflict has triggered the steepest monthly rise ever in domestic fuel prices. To protect domestic operations, state-owned oil companies adopted a calibrated approach, moderating increases for local carriers while foreign and other operators pay full market rates.
This hike comes on the heels of a 5.7% ATF price increase in March, and fuel now accounts for roughly 40% of an airline’s operating costs. Airlines are already facing additional fuel consumption due to longer rerouted flights caused by airspace closures.
Alongside ATF, commercial LPG prices have also been revised upward by Rs 195.50 per 19-kg cylinder, reaching Rs 2,078.50 in Delhi. Domestic cooking gas rates remain unchanged at Rs 913 per 14.2-kg cylinder.
Petroleum Ministry sources highlighted that while petrol and diesel prices remain frozen following a previous Rs 2 per-litre cut, extraordinary global market conditions, including closure of the Strait of Hormuz, have necessitated the historic ATF hike.
The Ministry of Petroleum and Natural Gas emphasized, “PSU Oil Marketing Companies, in consultation with the Ministry of Civil Aviation, have implemented a staggered 25% ATF increase (Rs 15 per litre) for domestic airlines to buffer travel costs, while international carriers will bear full global price hikes.”
