NEW DELHI, Apr 1: Aviation Turbine Fuel (ATF) prices more than doubled to a record Rs 2.07 lakh per kilolitre on Wednesday amid a surge in global oil prices, though domestic airlines will face only an 8.5 per cent increase.
Non-scheduled, charter and foreign carriers will bear the full impact, with ATF prices rising by Rs 1,10,703.08 per kl, or 114.5 per cent, to Rs 2,07,341.22 per kl. Domestic airlines, however, will pay significantly lower rates as part of a calibrated approach adopted by the government and state-run oil companies.
Industry sources said the decision aims to cushion domestic air travel from steep global price shocks, even as international operators pay market-linked rates.
Jet fuel prices, deregulated over two decades ago, are revised monthly in line with international benchmarks. This is the first time ATF rates have crossed the Rs 2 lakh per kl mark, surpassing the previous peak recorded in 2022 following the Russia-Ukraine conflict.
The latest revision marks the second consecutive monthly increase, after a 5.7 per cent hike on March 1.
The rise in fuel prices is expected to further strain airlines, which are already incurring higher costs due to longer flight routes following airspace closures amid the ongoing West Asia conflict. Fuel accounts for nearly 40 per cent of an airline’s operating expenses.
Meanwhile, commercial LPG prices were also increased by Rs 195.50 per 19-kg cylinder, with rates in Delhi reaching Rs 2,078.50. However, domestic LPG prices remain unchanged at Rs 913 per 14.2-kg cylinder.
State-owned oil firms—Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum—revise ATF and LPG prices on the first of every month based on global benchmarks and exchange rates.
Global oil prices have surged nearly 50 per cent following disruptions in energy supply chains triggered by the West Asia conflict.
Petrol and diesel prices, however, remain unchanged after a Rs 2 per litre cut last year, with petrol priced at Rs 94.72 and diesel at Rs 87.62 per litre in Delhi.
The Ministry of Petroleum and Natural Gas said ATF prices are revised monthly based on international benchmarks. It added that despite expectations of over 100 per cent increase due to extraordinary global conditions, only a partial and staggered hike has been passed on to domestic airlines to limit the impact on airfares. (Agencies)
