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Govt Caps ATF Price Hike at 25% to Shield Flyers, Airlines from Global Spike

The Civil Aviation Minister has hailed the government's decision to cap the Aviation Turbine Fuel price increase for domestic airlines at 25%, calling it a pragmatic move. This intervention averts a projected spike of over 100% linked to global energy disruptions from the Strait of Hormuz closure. The calibrated hike aims to shield passengers from sharp airfare increases and ease the financial burden on domestic carriers. However, international flight operations will not receive similar relief and must pay the full market-aligned price.

Key Points: Partial ATF Price Hike: Govt's "Pragmatic" Move to Ease Airfare Pressure

  • Partial 25% ATF hike for domestic airlines
  • Averts projected 100% price spike
  • International routes bear full cost
  • Aimed at easing passenger, airline burden
  • Geopolitical tensions disrupt global energy
3 min read

Civil Aviation Minister hails partial ATF price hike as "pragmatic and forward-looking"

Civil Aviation Minister welcomes a 25% ATF price cap for domestic airlines, shielding passengers from a projected 100% surge. International routes pay full cost.

"This calibrated approach will help shield passengers from sharp fare increases - Ram Mohan Naidu Kinjarapu"

New Delhi, April 1

Civil Aviation Minister Ram Mohan Naidu Kinjarapu on Wednesday welcomed the government's decision to allow only a partial increase in Aviation Turbine Fuel prices for domestic airlines, describing it as a timely measure to ease pressure on passengers and the aviation sector.

In a post on X, Kinjarapu wrote, "With ATF prices in India--deregulated since 2001 and revised monthly based on international benchmarks, facing extraordinary pressure due to global energy disruptions and the closure of the Strait of Hormuz, a steep increase of over 100% was anticipated from 1 April. In this challenging context, the decision by PSU Oil Marketing Companies, under the Ministry of Petroleum, in consultation with the Ministry of Civil Aviation, to implement only a partial and staggered increase of 25% (Rs 15/litre) for domestic airlines is both pragmatic and forward-looking, while ensuring that foreign routes bear the full market-aligned price."

Expressing gratitude to the government, he added, "Grateful to Hon'ble Prime Minister Narendra Modi ji and the Hon'ble Petroleum Minister Shri Hardeep Singh Puri ji for this timely and considerate intervention on ATF pricing. This calibrated approach will help shield passengers from sharp fare increases, ease the burden on domestic airlines, and support the continued stability of the aviation sector at this crucial juncture."

Kinjarapu also highlighted the broader economic impact, noting that the decision "will benefit the broader economy by ensuring the smooth movement of cargo and maintaining vital air connectivity for trade and logistics."

The Ministry of Petroleum and Natural Gas stated that ATF prices in India, deregulated since 2001, are revised monthly based on international benchmarks. The extraordinary global energy situation, triggered by the closure of the Strait of Hormuz, had initially suggested a more than 100 per cent spike in domestic ATF rates. In order to insulate domestic travel costs, PSU Oil Marketing Companies, in consultation with the Ministry of Civil Aviation, implemented only a partial and staggered increase of of 25% (only Rs15/litre) to the airlines

However, the government clarified that international flight operations will not receive similar relief. "Foreign routes will pay for the full increase in ATF prices consistent with what they pay in other parts of the world," the Ministry's X post read.

According to the revised rates effective April 1, 2026, ATF prices across major metro cities have risen notably. In Delhi, prices increased to Rs 1,04,927 per kilolitre from Rs 96,638.14 in March. Kolkata saw a jump to Rs 1,09,450 from Rs 99,587.14, while Mumbai's rates rose to Rs 98,247 from Rs 90,451.87. In Chennai, ATF is now priced at Rs 1,09,873 compared to Rs 1,00,280.49 last month.

The latest revision comes against the backdrop of escalating geopolitical tensions in West Asia, involving the United States, Israel and Iran, which has led to a blockade of the Strait of Hormuz, a key global transit route for crude oil and energy supplies.

- ANI

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Reader Comments

R
Rohit P
Good move, but let's be honest, a 25% increase is still significant. Airfares will definitely go up. I just booked tickets to visit my family in Chennai and the prices are already creeping higher. Hope the airlines absorb some of this cost and don't pass it all to us.
S
Sarah B
As someone who travels frequently for work between Delhi and Bangalore, I appreciate this intervention. The global situation is tough, and a full hike would have made business travel unsustainable for many companies. This is a balanced approach.
A
Aman W
While protecting domestic travel is good, why should international routes pay the full price? Many Indians travel abroad for work, education, and to visit family. This feels like a double standard. NRI families will feel the pinch.
K
Kavya N
The focus on cargo and logistics is crucial. So much of our e-commerce and perishable goods depend on air freight. A steep hike would have increased prices of everything from medicines to online deliveries. This decision has wider positive effects.
V
Vikram M
It's a temporary relief at best. The real issue is our dependence on global oil markets and unstable regions like the Strait of Hormuz. We need a long-term vision for energy security and alternative fuels for aviation. Jai Hind!

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