Aviation turbine fuel (ATF) shot past Rs 2 lakh per kilolitre on Wednesday, rising to Rs 2.07 lakh/kl as global oil prices surged. The full market-linked increase lifted ATF for non-scheduled, ad-hoc and charter operators by Rs 110,703.08/kl (114.5%), taking their price to Rs 207,341.22/kl. The immediate rise for scheduled domestic carriers was kept much smaller—reported at about an 8.5% increase—after the government and state-owned oil companies adopted a calibrated approach.
ATF has been deregulated for more than two decades and is indexed to international benchmark prices under an understanding with airlines. With energy markets shaken by the West Asia conflict and the closure of key shipping routes, authorities said they moderated the impact for domestic travel: public-sector oil marketing companies, in consultation with the Ministry of Civil Aviation, implemented only a partial, staggered increase for domestic airlines while applying full market rates to foreign and other operators. Officials also referenced a phased adjustment equivalent to a 25% measure (about Rs 15 per litre) in their statements.
This is the first time ATF has crossed the Rs 2 lakh/kl mark; the previous high was roughly Rs 1.1 lakh/kl in 2022 after oil prices spiked following Russia’s invasion of Ukraine. It is the second monthly rise, following a 5.7% (Rs 5,244.75/kl) increase on March 1. Airlines are expected to face additional cost pressure because many carriers must fly longer routes to western destinations due to airspace closures; fuel typically accounts for around 40% of an airline’s operating costs.
Commercial liquefied petroleum gas (LPG) used by hotels and restaurants was also raised. A 19-kg commercial cylinder in Delhi was increased by Rs 195.50 and now costs Rs 2,078.50. That follows a previous rise of Rs 114.50 per 19-kg cylinder on March 1. Household cooking gas (the 14.2-kg domestic cylinder) remains unchanged after a Rs 60 hike on March 7 and currently costs Rs 913 in Delhi.
State refiners Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum revise ATF and LPG prices on the first day of each month, using international price benchmarks and the exchange rate as guides. Industry and government statements note that global oil prices have climbed nearly 50% since the West Asia conflict began, disrupting energy supply chains and pushing benchmark rates higher.
Petrol and diesel retail rates remain frozen after a Rs 2-per-litre cut in March last year; in Delhi, petrol is priced at Rs 94.72/litre and diesel at Rs 87.62/litre.
The Ministry of Petroleum and Natural Gas said on X that ATF prices in India are revised monthly against international benchmarks. Given the extraordinary disruption to global energy markets, an over-100% rise in ATF for domestic markets was anticipated for April 1. To protect domestic travel costs, public-sector oil marketing companies, working with the civil aviation ministry, limited the immediate pass-through for domestic airlines and applied full increases to international and other operators consistent with global rates.
