Jet Fuel Prices Up By 8.5%: Will Your Flight Tickets Cost More?

Jet fuel prices for scheduled Indian carriers have been upped by about 8.5% in April, sparing the average air travellers big airfare hikes. Aviation turbine fuel (ATF) prices for scheduled airlines per kilo litre will now cost Rs 1,04,927 in Delhi, up from Rs 96,638.14 last month. At Mumbai, India’s second busiest hub, the price is now Rs 98,247, up from Rs 90,451.87 last month. 

Government Shields Domestic Airlines

However, the government on Wednesday shielded domestic airlines from a sharp increase in jet fuel prices amid global energy supply constraints due to the ongoing war in the Middle East.

The government said it would only allow a partial increase after it emerged that prices for the domestic market are expected to increase by over 100 per cent from April 1, 2026. This, the government said, is to shield domestic airfares from step hikes.

Therefore, public sector OMCs, or oil marketing companies, in consultation with the Ministry of Civil Aviation, have now implemented only a partial and staggered increase in ticket prices. Domestic airlines will face a limited hike - around 25 per cent or approximately Rs 15 per kl - instead of the full pass-through of global price increases, the government said.

IMPACT ON DOMESTIC FLIGHTS

For passengers flying within India, the immediate impact is expected to be limited.

Fuel is one of the biggest costs for airlines, but since only a part of the increase has been passed on, airlines are unlikely to sharply raise ticket prices in the near term. Any fare changes, if required, are expected to be gradual.

IMPACT ON INTERNATIONAL FLIGHTS?

Flights operating on overseas routes are more directly linked to global fuel prices, which means airlines are likely to feel the full impact of the increase. If crude oil prices remain elevated, passengers travelling abroad could see higher fares or additional fuel surcharges in the coming weeks.

The increase in jet fuel prices is driven by rising global crude oil rates amid geopolitical tensions involving Iran, the United States and Israel.

Concerns around disruptions in the Strait of Hormuz, a key oil transit route, have pushed crude oil prices above $100 per barrel, directly impacting aviation fuel costs.

A weaker rupee has further added to the pressure, as fuel imports become more expensive.