New Delhi: The government has stepped in to cushion the impact of rising aviation fuel costs by limiting the increase in jet fuel prices for domestic airlines. The decision comes amid global energy disruptions triggered by the conflict in Middle East, which has pushed fuel markets into volatility.
Earlier in the day, Indian Oil Corporation announced a sharp rise in aviation turbine fuel prices in Delhi, increasing rates to ₹2.07 lakh per kilolitre for April. However, within hours the price was revised downward to about ₹1.04 lakh per kilolitre after government intervention aimed at reducing the burden on airlines.
Officials said the move was necessary after projections showed that jet fuel prices in the domestic market could surge by more than 100 percent from April 1, 2026 if global rates were passed on fully. Instead, the government directed public sector oil marketing companies to introduce only a partial and staggered increase in consultation with the Ministry of Civil Aviation.
Under the revised structure, domestic carriers will face a limited rise of roughly 25 percent, estimated at about ₹15 per kilolitre, rather than the full increase linked to international fuel prices. Authorities said the measure is intended to prevent steep hikes in airfares while supporting the stability of the aviation sector.
In contrast, airlines operating international routes will bear the full impact of the fuel price increase in accordance with global market linked pricing mechanisms.
Ram Mohan Naidu, India’s Civil Aviation Minister, said the calibrated approach is designed to protect passengers and ensure the continued functioning of the aviation industry. He added that the move would help avoid sudden spikes in ticket prices while maintaining vital air connectivity and cargo movement essential for trade and logistics.
Global fuel markets have been under pressure following escalating tensions involving the Strait of Hormuz, a key maritime corridor that handles a significant portion of the world’s oil and gas shipments. Disruptions to tanker traffic in the region have tightened supply and driven energy prices higher.
The spike in jet fuel costs could have severely impacted airlines already operating with narrow profit margins. Across the Asia Pacific region, several carriers have also been affected by rising fuel costs, with some forced to reduce operations or cancel flights as expenses continue to climb.
