Oil cos passed on 25% of expected ATF price hike to airlines, says oil min
This story was originally published at 10:24 IST on 1 April 2026
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--Oil min: Oil cos passed on partial, staggered hike of 25% in ATF prices
--Oil min: Airlines to pay full increase in ATF prices on foreign routes
NEW DELHI – State-run oil marketing companies passed on only 25% of the expected price hike in aviation turbine fuel on domestic routes to airlines, the Ministry of Petroleum and Natural Gas said on Wednesday. "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 more than 100% on 1 April," the ministry said in a social media post, adding that oil companies instead opted for a partial, staggered price hike of INR 15 per litre.
"Foreign routes will pay for the full increase in ATF prices consistent with what they pay in other parts of the world," the ministry said. As of Apr. 1, a kilolitre of jet fuel costs INR 104,927 in New Delhi, compared with INR 96,638.14 a month ago.
The average prices of jet fuel had increased by 5.7% sequentially and 1.7% on year in March, according to ICRA. "As a result of the escalating West Asian conflict, crude oil prices (Brent) have already risen significantly since February 28, 2026 – to $105/bbl as on March 26, 2026, from $72/bbl. This has had the contagion effect on ATF prices spiking up," the research firm had said in a note last week.
Between April and the beginning of March, ATF prices had fallen around 4% year-on-year. Rising fuel costs are a burden for aviation companies as they account for around 30-40% of their operating expenses, including aircraft lease payments. End
Reported by Anand JC
Edited by Akul Nishant Akhoury
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