New Delhi: The Centre has stepped in to moderate a sharp surge in aviation turbine fuel (ATF) prices, aiming to shield domestic airlines and passengers from steep fare increases triggered by global energy disruptions.
State-run oil marketing companies initially raised ATF prices in Delhi to around Rs 2.07 lakh per kilolitre for April, reflecting mounting pressure from international markets. However, within hours, the price was revised downward to about Rs 1.04 lakh per kilolitre after government intervention to limit the impact on the domestic aviation sector.
Under the revised approach, domestic carriers will face only a partial and staggered increase in fuel costs—estimated at around 25 per cent—while airlines operating international routes will continue to bear the full market-linked price rise.
Civil Aviation Minister Ram Mohan Naidu said the calibrated pricing strategy is designed to maintain sectoral stability while protecting passengers from sudden fare spikes. He noted that the move would also help sustain cargo operations and preserve critical air connectivity for trade and logistics.
The decision comes amid heightened volatility in global energy markets due to the ongoing conflict in West Asia. Disruptions, including constraints on tanker movement through the Strait of Hormuz—a key global energy corridor—have significantly pushed up fuel prices worldwide.
A full pass-through of the price surge would have placed considerable financial strain on Indian airlines, many of which already operate on thin margins. Similar pressures are being felt globally, with several carriers adjusting operations as fuel costs rise.
Meanwhile, the broader impact of rising energy prices is also being felt domestically. Oil companies have increased the price of commercial LPG cylinders, with 19-kg cylinders seeing hikes of up to Rs 218 across major cities. In Delhi, the revised price now stands above Rs 2,000, while other metros have recorded comparable increases.
The government’s intervention on ATF pricing is being seen as a balancing measure to cushion the aviation sector while navigating ongoing global uncertainties in energy supply.
