New Delhi, April 1 – ATF or jet fuel prices more than doubled to a record Rs 2.07 lakh per kilolitre on Wednesday, but state-owned oil companies passed on only a fraction of the increase to domestic airlines, adopting a calibrated approach to dealing with the war-linked surge in global oil prices.
The price of aviation turbine fuel (ATF) was increased by 8.5 per cent to Rs 104,927.18 per kl for domestic airlines, according to state-owned oil firms.
The price of ATF for domestic airlines in Delhi was hiked by Rs 8,289.04 per kilolitre, or 8.56 per cent, to Rs 104,927.18 per kl. This compares to Rs 96,638.14 per kl last month.
Domestic airlines will pay half of what foreign airlines, as well as other carriers such as those offering ad hoc or charter services, would pay. For them, the prices have gone up by Rs 110,703.08 per kl, or 114.5 per cent, to Rs 207,341.22 per kl.
In addition, the prices of commercial LPG – the other petroleum product besides ATF whose pricing is deregulated – were increased by Rs 195.50 per 19-kg cylinder.
The price of select premium or branded petrol and diesel – which make up 2-5 per cent of all auto fuels sold in the country – was also increased by Rs 1.50 a litre to Rs 92.99 for 'Extra Green' diesel and by Rs 11 to Rs 160 a litre for 100 octane petrol (XP100).
The prices of normal or unbranded petrol and diesel remain unchanged, as do the rates of domestic cooking gas LPG.
Explaining the rationale for the jet fuel price hike, the Ministry of Petroleum and Natural Gas, in a post on X, said that ATF prices in India are deregulated and are revised on a monthly basis based on a formula of international benchmarks.
"Due to the closure of the Strait of Hormuz and the extraordinary situation in global energy markets, the price of ATF for domestic markets was expected to increase by more than 100 per cent on April 1," it said. "In order to protect domestic air travel costs from the substantial increase in international prices, PSU Oil Marketing Companies of the Ministry of Petroleum, in consultation with the Ministry of Civil Aviation, have passed on only a partial and staggered increase of 25 per cent (only Rs 15 per litre) to the airlines. Foreign routes will pay for the full increase in ATF prices, consistent with what they pay in other parts of the world."
Civil Aviation Minister Rammohan Naidu Kinjarapu termed the partial and staggered increase in ATF price for domestic airlines as "pragmatic and forward-looking, while ensuring that foreign routes bear the full market-aligned price."
"This calibrated approach will help protect passengers from sharp fare increases, ease the burden on domestic airlines, and support the continued stability of the aviation sector at this crucial juncture. It will also benefit the broader economy by ensuring the smooth movement of cargo and maintaining vital air connectivity for trade and logistics," he added.
The increase for domestic airlines amounted to only 8.56 per cent or Rs 8.3 per litre (Rs 8,289.04 per kl equals about Rs 8.3 per litre). While the ministry did not elaborate on its calculations, the 25 per cent or Rs 15 per litre figure may be the total increase that the oil companies may have decided to pass on to domestic airlines over a certain period of time.
Pricing of ATF was deregulated in 2001, and since then, the rates have been aligned with benchmark international prices, as per a written understanding with the airlines.
However, since the Middle East war-induced surge in global energy prices warranted the steepest increase ever to be made in ATF prices, the government and state-owned oil companies decided to adopt a calibrated approach, industry sources said.
While foreign airlines and other carriers would pay market rates, prices for domestic airlines have been moderated, they said.
This is the first time ever that the ATF price has crossed the Rs 2 lakh per kl mark. The previous peak was in 2022 when rates were hiked to Rs 1.1 lakh per kl as oil prices surged after Russia invaded Ukraine.
Wednesday's hike is the second straight monthly increase in rates. Prices on March 1 were hiked by 5.7 per cent (Rs 5,244.75 per kl).
The rising prices will further strain airlines, which are already burning more fuel in taking longer routes for flying to Western destinations because of airspace closures due to the war. Fuel makes up around 40 per cent of an airline's operating cost.
In addition, rates of commercial LPG – one that is used by hotels and restaurants – were hiked by Rs 195.50 per 19-kg cylinder. A 19-kg commercial LPG now costs Rs 2,078.50 in Delhi.
Rates were last increased by Rs 114.5 per 19-kg cylinder on March 1.
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.
State-owned Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum revise ATF and LPG prices on the first day of every month based on international benchmarks and the exchange rate.
Petrol and diesel prices continue to remain frozen after a Rs 2 per-litre reduction in March last year; petrol currently costs Rs 94.72 per litre in Delhi and diesel Rs 87.62.
On LPG prices, the ministry said that prices of commercial LPG cylinders, used by industries and hotels, are deregulated, market-determined and revised normally on a monthly basis. Their consumption is less than 10 per cent of the total LPG consumed in the country.
"April 1 price increase in commercial cylinder price is due to a 44 per cent surge in the Saudi Contract Price: from USD 542 per tonne in March to USD 780 per tonne for April, as 20-30 per cent of global LPG supplies are stuck in Strait of Hormuz (due to the war in Middle East)," it said.
The oil marketing companies are incurring under recovery of Rs 380 per cylinder in keeping domestic LPG rates unchanged, it said. "Cumulative losses by end-May will reach approximately Rs 40,484 crore. Last year also, out of total losses of Rs 60,000 crore, Rs 30,000 crore were absorbed by oil PSUs and Rs 30,000 crore by Government of India, in order to insulate the Indian citizens from high international LPG prices."
India's domestic LPG price remains one of the lowest in the world as compared to Pakistan: Rs 1,046; Sri Lanka: Rs 1,242; Nepal: Rs 1,208, it added.
On the increase in price of premium petrol and diesel, it said, "Regular petrol and diesel prices - the fuel that India runs on - are unchanged, i.e. at Rs 94.77 per litre and Rs 87.67 per litre in Delhi."
"With global petroleum prices up by up to 100 per cent in the last 1 month, PSU OMCs are incurring under-recoveries of Rs 24.40 per litre on petrol and Rs 104.99 a litre on diesel at RSP level as on 01.04.2026," it said. "The recent Rs 2/litre revision applies only to premium petrol variants - XP95, Power95, Speed - high-octane performance products, whose prices are revised on fortnightly basis and whose sales by volume are 2 per cent and 5 per cent of total volume. They are purchased by motorists, at a premium, by choice."
Every pump in India continues to offer regular petrol and diesel at unchanged prices, even as prices in countries all over the world have risen by 30-50 per cent, it added.
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