Govt cushions jet fuel spike; domestic airfares likely to stay stable

New Delhi: The Centre has stepped in to shield the domestic aviation sector from a sharp rise in aviation turbine fuel (ATF) prices, indicating that airfares within India are unlikely to see a steep increase.

The Ministry of Petroleum and Natural Gas (MoPNG) said that although ATF prices—deregulated since 2001—are revised monthly based on global benchmarks, the current geopolitical tensions had pointed to a potential surge of over 100 per cent from April 1. However, to prevent a sudden burden on airlines and passengers, public sector oil marketing companies, in consultation with the Ministry of Civil Aviation, have opted for a calibrated approach.

Instead of passing on the full increase, domestic airlines will face only a partial hike of around 25 per cent, roughly translating to Rs 15 per litre. In contrast, international carriers will bear the full impact of the global price rise, in line with market-linked pricing norms.

Union Civil Aviation Minister Ram Mohan Naidu said the move is aimed at maintaining affordability and stability in the sector. He noted that the decision would help protect passengers from sudden fare hikes, ease operational pressure on airlines, and ensure continued reliability in air connectivity.

The government also highlighted the broader economic benefits of the decision, particularly in maintaining smooth cargo movement and supporting trade logistics.

The intervention comes amid a surge in global crude oil prices driven by tensions in West Asia and concerns over supply disruptions near the Strait of Hormuz, a key route for energy transportation.

Meanwhile, Indian Oil Corporation clarified that ATF prices have increased by around 8.5 per cent, not 115 per cent as initially reported. Jet fuel in Delhi is currently priced at approximately Rs 1.04 lakh per kilolitre.

--IANS