Jet fuel price surge: Govt caps hike to protect domestic airlines
New Delhi, April 1: The government on Wednesday stepped in to shield domestic airlines from a sharp rise in aviation turbine…
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New Delhi, April 1: The government on Wednesday stepped in to shield domestic airlines from a sharp rise in aviation turbine fuel (ATF) prices, triggered by global energy disruptions due to the Middle East conflict.
Govt limits impact of fuel price spike
State-run Indian Oil Corporation initially raised ATF prices in Delhi to Rs 2.07 lakh per kilolitre, more than double the previous rate, before revising it down to Rs 1.04 lakh/kl within hours.
The government decided to allow only a partial increase, preventing a full pass-through of global price spikes to domestic carriers. Airlines will now face a limited hike of around 25% (about Rs 15 per kl) instead of a steep jump.
Domestic airlines protected, global routes affected
The move aims to prevent a sharp rise in airfares and reduce pressure on domestic airlines already operating on thin margins.
However, airlines operating international routes will have to bear the full increase, in line with global market-linked pricing.
Civil Aviation Minister Ram Mohan Naidu said the calibrated approach will help maintain sector stability, protect passengers, and ensure smooth cargo movement and connectivity.
Middle East conflict drives global fuel crisis
The surge in jet fuel prices follows the US-Israel war on Iran, which has disrupted global energy supplies. Strikes on key infrastructure and a blockade in the Strait of Hormuz—a critical route for nearly 20% of global oil and gas supply—have pushed prices higher.
Airlines across regions, from Vietnam to New Zealand, have already been impacted, with some cancelling flights due to rising costs.
