In a move aimed at shielding domestic air travel from a sharp surge in global fuel prices, the government has capped the increase in Aviation Turbine Fuel (ATF) prices for domestic airlines at 25%, significantly lower than the over 100% rise indicated by international benchmarks.
The Ministry of Petroleum and Natural Gas said the intervention comes in response to an “extraordinary situation in global energy markets” triggered by the closure of the Strait of Hormuz, a critical route for global crude oil supplies.
ATF prices in India, deregulated since 2001, are revised monthly based on global benchmarks. However, to prevent a steep rise in airfares, public sector oil marketing companies, in consultation with the Ministry of Civil Aviation, implemented only a partial and staggered increase of 25% – equivalent to around ₹15 per litre – for domestic carriers.
The government clarified that international flight operations will not receive similar relief, with airlines operating on foreign routes required to bear the full increase in ATF prices in line with global market rates.
Civil Aviation Minister Ram Mohan Naidu Kinjarapu welcomed the decision, calling it a “pragmatic and forward-looking” step. He said the calibrated approach would help shield passengers from sharp fare hikes, ease financial pressure on airlines, and ensure stability in the aviation sector.
He also expressed gratitude to Prime Minister Narendra Modi and Petroleum Minister Hardeep Singh Puri for the timely intervention, noting that the move would support cargo movement and maintain vital air connectivity for trade and logistics.
According to revised rates effective April 1, ATF prices have still risen across major metro cities. In Delhi, prices increased to ₹1,04,927 per kilolitre from ₹96,638.14 in March. Kolkata saw rates climb to ₹1,09,450, while Mumbai and Chennai recorded prices of ₹98,247 and ₹1,09,873 per kilolitre, respectively.
The broader fuel price adjustments come amid escalating geopolitical tensions in West Asia involving the United States, Israel, and Iran, which have disrupted energy supply chains and led to the blockade of the Strait of Hormuz.
The government’s calibrated approach to ATF pricing is expected to cushion the impact on domestic passengers while maintaining operational stability for airlines during a period of global energy uncertainty.
(With ANI inputs)
