Jet fuel price rise clarified as government limits impact on domestic airlines

The recent increase in Aviation Turbine Fuel prices has raised concerns, especially after reports claimed that prices had more than doubled. However, the government has clarified that the full increase has not been passed on to domestic airlines.

According to the Ministry of Petroleum and Natural Gas, only a partial increase has been applied for airlines operating within India. This step has been taken to reduce the impact on domestic air travel and prevent ticket prices from rising sharply.

Earlier reports suggested that ATF prices had risen to around Rs 2.07 lakh per kilolitre due to a surge in global oil prices. This increase was linked to tensions in West Asia and disruptions in global energy supply, including issues related to the Strait of Hormuz.

However, oil companies later revised the rates and announced updated prices for major cities. The new ATF prices are around Rs 1,04,927 per kilolitre in Delhi, Rs 1,09,450 in Kolkata, Rs 98,247 in Mumbai, and Rs 1,09,873 in Chennai. These revised rates came into effect from April 1, 2026.

Government limits impact on domestic airlines

The government explained that ATF is a deregulated fuel, which means its price is based on international market rates. These prices are usually updated every month based on global benchmarks.

In this case, global oil prices had increased sharply, which could have led to a major rise in ATF prices. However, the government decided to control the impact on domestic airlines by allowing only a partial increase.

Officials said that instead of passing the full price hike, oil marketing companies increased prices by about 25 percent for domestic airlines. This translates to an increase of roughly Rs 15 per litre. For domestic carriers, the overall increase is about 8.5 percent.

This move is aimed at protecting passengers from a sudden rise in airfares. If airlines had to pay the full increase, ticket prices for domestic flights could have gone up significantly.

The decision was taken after discussions between the Petroleum Ministry and the Ministry of Civil Aviation. The goal was to balance rising global costs while keeping domestic travel affordable.

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Higher costs for international and other carriers

While domestic airlines have been given some relief, other operators will have to pay higher prices. International airlines, charter services, and non-scheduled operators will be charged the full market rate.

For these carriers, ATF prices have increased sharply. The price has gone up by more than Rs 1.10 lakh per kilolitre, which is an increase of over 100 percent. This means they will bear the full cost of rising global fuel prices.

The government has said that this approach is fair, as international carriers already pay similar prices in other countries. By charging them the full rate, the government ensures that domestic airlines are protected without disrupting global market practices.

The rise in ATF prices is mainly due to global factors. Ongoing tensions in West Asia have affected oil supply and increased prices worldwide. The situation around the Strait of Hormuz, a key route for oil transport, has also added to the uncertainty.

Fuel costs are one of the biggest expenses for airlines. Any increase in ATF prices can directly affect airline operations and ticket prices. This is why the government’s decision to limit the increase for domestic airlines is important.

Despite the price hike, the aviation sector in India is expected to continue growing. However, airlines may still face some pressure due to higher operating costs.

In conclusion, while ATF prices have increased globally, the government has taken steps to reduce the impact on domestic airlines. By allowing only a partial increase, it aims to keep air travel affordable for passengers in India. At the same time, international and other carriers will pay the full price, reflecting global market conditions.

The situation will continue to depend on global oil prices and developments in West Asia. For now, the revised pricing strategy provides some relief to domestic airlines and passengers.