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Govt Caps ATF Price Hike at 25% to Shield Domestic Flyers from Global Shock

The Indian government has intervened to limit the increase in Aviation Turbine Fuel prices for domestic airlines to just 25%, despite international benchmarks indicating a potential surge of over 100%. This decision, made by public sector oil marketing companies in consultation with ministries, aims to protect domestic air travelers from sharp fare hikes. The move is a direct response to an extraordinary global energy situation caused by the closure of the critical Strait of Hormuz transit route. However, the relief does not extend to international flight operations, which will bear the full cost increase.

Key Points: Govt Limits ATF Price Rise to 25% for Domestic Airlines

  • Caps ATF price rise at 25% for domestic airlines
  • International flights pay full global price hike
  • Triggered by Strait of Hormuz closure
  • LPG cylinder prices also see increases
3 min read

Govt intervenes to soften ATF shock, allows only partial pass-through to airlines

Government intervenes to cap Aviation Turbine Fuel price increase at 25% for domestic flights, insulating travelers from a 100% global surge.

"In order to insulate the domestic travel costs... PSU Oil Marketing Companies... have passed only a partial and staggered increase of 25% - Ministry of Petroleum"

New Delhi, April 1

In a move aimed at protecting domestic air travel from a sharp global fuel shock, the government has limited the increase in Aviation Turbine Fuel prices for domestic airlines to 25%, even as international benchmarks indicated a potential surge of over 100%.

The Ministry of Petroleum and Natural Gas said the decision comes in response to an "extraordinary situation in global energy markets," triggered by the closure of the Strait of Hormuz. 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.

"ATF prices in India were deregulated in 2001 and are revised on monthly basis based on a formula of international benchmarks. Due to the closure of Strait of Hormuz and extraordinary situation in global energy markets, price of ATF for domestic markets was expected to increase by more than 100% on 1 April," the post read.

"In order to insulate the domestic travel costs from the substantial increase in international prices, PSU Oil Marketing Companies of the Ministry of Petroleum, in consultation with Ministry of Civil Aviation, have passed only a partial and staggered increase of 25% (only Rs.15/litre) to the airlines," the Ministry further wrote on X.

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 statement added.

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

ATF prices in India have been deregulated since 2001 and are revised monthly based on international benchmarks.

The intervention comes amid an extraordinary global energy situation triggered by the closure of the Strait of Hormuz, a critical oil transit chokepoint.

Earlier today, the prices of LPG cylinders have been revised upward with effect from April 1, with commercial and smaller cylinders witnessing a significant increase across key cities.

In Delhi, the price of a 19 kg commercial LPG cylinder has been increased to Rs 2,078.50, marking a rise of Rs 195.50. Meanwhile, the 5 kg FTL cylinder is now priced at Rs 549 per refill, reflecting an increase of Rs 51, sources said.

In Kolkata, the price of a 19 kg commercial LPG cylinder has gone up by Rs 218, indicating a broader trend of rising fuel costs across urban centres.

Meanwhile, domestic cooking gas LPG rates, which were last hiked by Rs 60 per 14.2-kg cylinder on March 7, remain unchanged. It costs Rs 913 per 14.2-kg cylinder in Delhi.

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 step, but what about the LPG price hike for commercial cylinders? Small restaurants and dhabas are already struggling. The government is helping flyers but squeezing small businesses. The burden is not evenly shared.
A
Arjun K
This is a short-term fix. The real issue is our dependence on imported oil. We need to fast-track alternatives like biofuels for aviation and electric vehicles for road transport. Jai Hind!
S
Sarah B
As someone who travels frequently between Delhi and Mumbai for work, I'm relieved. However, I hope airlines don't use this as an excuse to add other surcharges. The 25% increase will still be passed on to us.
V
Vikram M
The Strait of Hormuz closure shows how fragile global supply chains are. India must have stronger strategic reserves and diversify its energy partners. This intervention was necessary, but we need a long-term vision.
K
Karthik V
Respectfully, while protecting domestic travel is good, who is bearing the cost of this subsidy? Is it the oil marketing companies? Ultimately, it's taxpayer money. Transparency in such decisions is crucial.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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