ATF prices double globally, but domestic airlines face limited 8.5% hike

Story by  PTI | Posted by  Vidushi Gaur | Date 01-04-2026
Representational Image
Representational Image

 

New Delhi

Aviation turbine fuel (ATF) prices have more than doubled to a record ₹2.07 lakh per kilolitre amid a global surge in oil prices, but domestic airlines in India will face only a limited increase of about 8.5 per cent, thanks to a calibrated pricing approach by the government and state-run oil companies.

According to official data, ATF prices for domestic carriers in Delhi rose by ₹8,289 per kilolitre to ₹1,04,927.18 per kl, compared to ₹96,638.14 per kl last month. In contrast, foreign airlines and non-scheduled operators will bear the full impact, with prices jumping over 114 per cent.

The government said the partial pass-through was aimed at shielding passengers from a sharp spike in airfares and maintaining stability in the aviation sector, even as global energy markets remain volatile due to the ongoing Middle East conflict and disruptions in supply routes like the Strait of Hormuz.

Officials indicated that while global prices warranted a much steeper hike, only a staggered increase—estimated at around ₹15 per litre—would be passed on to domestic airlines over time.

Fuel accounts for nearly 40 per cent of an airline’s operating costs, and the moderated hike is expected to ease pressure on carriers already grappling with longer flight routes and rising expenses.

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Alongside ATF, prices of commercial LPG were also increased, while rates of regular petrol and diesel remained unchanged, continuing the government’s effort to cushion consumers from global price shocks.