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Centre steps in to cushion airlines and passengers as global energy volatility threatens steep fare hikes
April 1, 2026: The Centre on Wednesday addressed the recent surge in aviation turbine fuel (ATF) prices, announcing that the hike for domestic airlines has been capped at 25% to reduce the impact of global energy volatility. The move comes amid escalating tensions in the Middle East and the closure of the Strait of Hormuz following US-Israel strikes on Iran. The government described the decision as a “partial and staggered increase” aimed at preventing a sharp rise in airfares and protecting passengers.
According to the Ministry of Petroleum and Natural Gas, ATF prices in India have been deregulated since 2001 and are revised monthly based on international benchmarks. Due to the current crisis, prices were expected to surge by over 100% from April 1. However, public sector oil companies, in consultation with the Ministry of Civil Aviation, limited the increase to around ₹15 per litre for domestic carriers. Meanwhile, international routes will continue to bear the full impact of the global price rise.
Despite the increase, scheduled domestic airlines have seen a relatively moderate rise of about 8.5% in April, offering some relief to both airlines and passengers. In Delhi, ATF prices rose to ₹1,04,927 per kilolitre, while other major hubs also reported increases. However, non-scheduled and charter operators have been hit harder, facing hikes of over 100% for both domestic and international operations, reflecting the full brunt of global market pressures.