ATF also known as jet fuel prices have surged to double marking the scale of Rs 2.07 lakh per kilolitre on Wednesday and a fraction of these increase has been passed to domestic airline. This means that Domestic airlines will have to pay half of what foreign airlines will.
Aviation turbine fuel (ATF) prices for domestic airlines were raised by ₹8,289.04 per kilolitre, or 8.56%, to ₹1,04,927.18 per kl in Delhi, according to state-run oil companies.
The revised rate marks an increase from ₹96,638.14 per kl last month, reflecting a sharp rise in aviation fuel costs.
Additional, the price of branded petrol and diesel, which accounts for 2-5% of all auto fuels have also increased by Rs. 1.50 a litre to Rs. 92.99 for ‘Extra Green’ diesel.
While petrol, diesel and domestic LPG prices remain steady, the Ministry of Petroleum and Natural Gas said ATF rates are adjusted every month based on international pricing trends, following deregulation in 2001.
The increase for domestic airlines works out to 8.56%, or about ₹8.3 per litre (₹8,289.04 per kilolitre).
While the ministry did not detail its calculations, the indicated figure of a 25% rise, or around ₹15 per litre, appears to reflect the total increase oil companies may be planning to pass on to domestic airlines in phases over a period of time.
“Due to the closure of Strait of Hormuz and 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,” ministry of petroleum said.
“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 the Ministry of Civil Aviation, have passed 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.” it added.
Meanwhile, Civil Aviation Minister Rammohan Naidu Kinjarapu said, “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. It will also benefit the broader economy by ensuring the smooth movement of cargo and maintaining vital air connectivity for trade and logistics,”
“… We are all aware that how the ATF pricing works is that on the first of the month, the ATF prices are announced, which is valid for the entire month. Since this crisis in West Asia started and started affecting the global energy market… So the airlines are seeing that the potential increase in prices will be there from the 1st April. Some of the airlines had started levying a fuel surcharge… This intervention, which is announced today, will effectively make sure that either the airlines will now recalibrate their pricing and then pull back the fuel surcharges, or they will calibrate in such a way that the calculation is such that it will not lead to further additional surcharges…” said Joint Secretary in the Ministry of Civil Aviation, Asangba Chuba Ao, while talking to ANI.
It is significant to note that, this is the first time that the ATF prices have surged to crosses the Rs. 2 lakh per Kl mark. Previously, when the rise took place in 2022 after Russia invaded Ukrain, the rates were hiked to Rs. 1. 1 lakh per kl.
“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.” the Ministry of Petroleum and Natural Gas, said.
