Govt's partial ATF price hike a timely move, says Aviation Minister

Civil Aviation Minister Ram Mohan Naidu Kinjarapu welcomed the govt's decision for a partial 25% ATF price hike for domestic airlines. This move shields passengers from a steep 100% anticipated increase due to global energy disruptions.

Civil Aviation Minister Ram Mohan Naidu Kinjarapu on Wednesday welcomed the government's decision to allow only a partial increase in Aviation Turbine Fuel (ATF) prices for domestic airlines, describing it as a timely measure to ease pressure on passengers and the aviation sector.

In a post on X, Kinjarapu wrote, "With ATF prices in India--deregulated since 2001 and revised monthly based on international benchmarks, facing extraordinary pressure due to global energy disruptions and the closure of the Strait of Hormuz, a steep increase of over 100% was anticipated from 1 April. In this challenging context, the decision by PSU Oil Marketing Companies, under the Ministry of Petroleum, in consultation with the Ministry of Civil Aviation, to implement only a partial and staggered increase of 25% (Rs 15/litre) for domestic airlines is both pragmatic and forward-looking, while ensuring that foreign routes bear the full market-aligned price."

Expressing gratitude to the government, he added, "Grateful to Hon'ble Prime Minister Narendra Modi ji and the Hon'ble Petroleum Minister Shri Hardeep Singh Puri ji for this timely and considerate intervention on ATF pricing. This calibrated approach will help shield passengers from sharp fare increases, ease the burden on domestic airlines, and support the continued stability of the aviation sector at this crucial juncture."

Kinjarapu also highlighted the broader economic impact, noting that the decision "will benefit the broader economy by ensuring the smooth movement of cargo and maintaining vital air connectivity for trade and logistics."

With ATF prices in India—deregulated since 2001 and revised monthly based on international benchmarks, facing extraordinary pressure due to global energy disruptions and the closure of the Strait of Hormuz, a steep increase of over 100% was anticipated from 1 April. In this… — Ram Mohan Naidu Kinjarapu (@RamMNK) April 1, 2026

Government's Staggered Approach

The Ministry of Petroleum and Natural Gas stated that ATF prices in India, deregulated since 2001, are revised monthly based on international benchmarks. The extraordinary global energy situation, triggered by the closure of the Strait of Hormuz, had initially suggested a more than 100 per cent spike in domestic ATF rates. In order to insulate domestic travel costs, PSU Oil Marketing Companies, in consultation with the Ministry of Civil Aviation, implemented only a partial and staggered increase of of 25% (only Rs15/litre) to the airlines

However, the government clarified that international flight operations will not receive similar relief. "Foreign routes will pay for the full increase in ATF prices consistent with what they pay in other parts of the world," the Ministry's X post read.

Revised ATF Prices in Metro Cities

According to the revised rates effective April 1, 2026, ATF prices across major metro cities have risen notably. In Delhi, prices increased to Rs 1,04,927 per kilolitre from Rs 96,638.14 in March. Kolkata saw a jump to Rs 1,09,450 from Rs 99,587.14, while Mumbai's rates rose to Rs 98,247 from Rs 90,451.87. In Chennai, ATF is now priced at Rs 1,09,873 compared to Rs 1,00,280.49 last month.

Geopolitical Tensions Fuel Price Rise

The latest revision comes against the backdrop of escalating geopolitical tensions in West Asia, involving the United States, Israel and Iran, which has led to a blockade of the Strait of Hormuz, a key global transit route for crude oil and energy supplies. (ANI)

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