ATF Prices Rise Limited to 25% Despite Global Surge; Govt Steps In to Protect Domestic Airfares
New Delhi: In a significant move to shield domestic air passengers from a sharp spike in aviation fuel prices, the Ministry of Petroleum and Natural Gas has announced a limited increase in Aviation Turbine Fuel (ATF) prices, despite extreme volatility in global energy markets.
According to an official post by the Ministry at 9:50 AM on April 1, 2026, ATF prices in India—deregulated since 2001—are revised on a monthly basis based on international benchmarks. However, the current global crisis, triggered by the closure of the Strait of Hormuz, had created an unprecedented situation, with ATF prices expected to surge by over 100% for the domestic market from April 1.
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…
— Ministry of Petroleum and Natural Gas #MoPNG (@PetroleumMin) April 1, 2026
In response, Public Sector Oil Marketing Companies (OMCs), under the Ministry of Petroleum and Natural Gas, in consultation with the Ministry of Civil Aviation, have decided to implement only a partial and staggered price hike. Instead of passing on the full burden, domestic airlines will face a limited increase of 25%, translating to approximately ₹15 per litre.
Officials stated that this calibrated approach is aimed at preventing a steep rise in domestic airfares, thereby protecting passengers and ensuring affordability in air travel across India.
At the same time, the government has clarified that airlines operating on international routes will bear the full increase in ATF prices, in line with global pricing norms applicable in other countries.
The decision reflects a balancing act between aligning with international fuel pricing trends and safeguarding the interests of domestic travellers amid a turbulent global energy scenario.
The Ministry emphasized that the situation continues to be closely monitored, and further decisions will be taken based on global market developments.
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