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Informist, Wednesday, Apr. 1, 2026

 

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--Govt: Limited ATF price hike to aid airlines maintain competitive pricing 
--CONTEXT: Govt ministries briefing media on West Asia conflict 
--Govt: To monitor, take action against any sudden irregular rise in airfare 
--Govt: ATF price hike will make airlines recalibrate fuel surcharge 
--Govt on staggered ATF price hike: To take steps as required 
--Govt: Agencies reported sale of 65,000 of 5-kg LPG cylinders Tue 
--Govt: Oil PSUs making under-recoveries amid West Asia war 
--Govt: No dry-out reported at any petrol pumps 
 

 

NEW DELHI – The government's decision to allow oil marketing companies to hike the price of aviation turbine fuel for airlines in a staggered manner will ensure competitive pricing for domestic airlines, Ministry of Civil Aviation Joint Secretary Asangba Chuba said Wednesday. Due to the closure of the Strait of Hormuz amid the ongoing conflict in West Asia, the price of ATF is likely to double, but state-run OMCs have passed on only 25% of the expected price surge to airlines operating domestic routes. 

 

"For Indian carriers, where fuel typically accounts for around 40% of total operating expenses, this move prevents a potential industry-wide crisis," Chuba said at an inter-ministerial press briefing on steps taken by the government to reduce the economic impact of the ongoing war in West Asia, which began on Feb. 28. "The limited increase of 25% on ATF price will allow airlines to maintain competitive pricing for domestic travellers, avoiding the additional fuel surcharges that would have been necessary under a market-linked pricing mechanism," Chuba added. 

 

Airlines will also recalibrate the fuel surcharge, which some had been levying on airfares since the war began. After the staggered ATF price hike, Chuba said the airlines would either roll back the surcharge or calibrate it so there are no further surcharge increases. The aviation ministry will monitor airfares and will intervene if there is any abnormal surge, Chuba said. 

 

Currently, the OMCs have been allowed to partially pass on the expected price increase in ATF on domestic routes to airlines, and going ahead, the government will decide whether a complete pass-on will be required, Ministry of Petroleum and Natural Gas Joint Secretary Sujata Sharma said. OMCs are making under-recoveries amid the West Asia conflict, Sharma said.

 

Last week, the government cut excise duty on petrol and diesel by INR 10 per litre to offset under-recoveries by the oil marketing companies and ensure they continue sourcing crude oil and maintain domestic fuel supply without raising retail prices. The price of Brent Crude has jumped 42% to over $100 a barrel since the onset of the conflict in West Asia. 

 

Sharma reiterated at the briefing that there is sufficient fuel inventory, with no dry-out reported at any petrol pump or liquefied petroleum gas distribution agency. "Nearly 92% of LPG bookings are happening online and 81% of deliveries are happening with delivery authentication codes," Sharma said. "Agencies reported delivery of 6 million cylinders Tuesday, out of which there were 65,000 of 5-kg cylinders."  End

 

US$1 = INR 94.83

 

Reported by Krity Ambey

Edited by Saji George Titus

 

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