New Delhi, April 1: In response to the turmoil in the global energy market, the central government has made a significant move to provide relief to passengers and the domestic aviation sector. The government has limited the price increase of Aviation Turbine Fuel (ATF) for domestic airlines to 25%, despite fears of a more than 100% rise internationally.
According to the Ministry of Petroleum and Natural Gas, this decision was made considering the extraordinary circumstances in the global energy market. Rising tensions in West Asia and the potential closure of the Strait of Hormuz have increased pressure on fuel supplies, leading to concerns about a sharp spike in ATF prices.
The government clarified that state-owned oil marketing companies, in collaboration with the Ministry of Civil Aviation, have implemented only a partial and phased increase in prices. Under this new structure, the price of ATF for domestic airlines has been raised by approximately 25%, or about ₹15 per liter, to protect passengers from sudden and steep fare hikes.
However, it is important to note that this relief will not apply to international flights. Airlines operating on foreign routes will have to pay the full increased global price of ATF.
As of April 1, 2026, the new rates have resulted in a price increase for ATF in major metropolitan areas of the country. In Delhi, the price has risen to ₹1,04,927 per kiloliter, up from ₹96,638.14 in March.
Civil Aviation Minister Ram Mohan Naidu Kinjirapu welcomed this decision, describing it as practical and visionary. He expressed gratitude to Prime Minister Narendra Modi and Petroleum Minister Hardeep Singh Puri, stating that this step will help shield passengers from high airfares, reduce pressure on domestic airlines, and maintain stability in the aviation sector.
The minister also mentioned that the broader economic impact of this decision would be positive, as it would ensure smooth air connectivity essential for freight and trade.
This decision comes amid a sharp rise in global crude oil prices due to ongoing tensions in West Asia. Disruptions around the Strait of Hormuz, a crucial route for global energy trade, have driven up fuel costs worldwide.
According to oil companies, the price of ATF has increased by approximately 8.5%, rather than the previously reported 115%. The current price of jet fuel stands at around ₹1.04 lakh per kiloliter.
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