New Delhi, Apr 1 (APAC Media): The central government on Wednesday clarified that the recent hike in aviation turbine fuel (ATF), commonly known as jet fuel, is only a “partial and staggered increase” aimed at protecting domestic airlines from a sharp global surge in energy prices.
The clarification comes amid widespread concern after reports suggested a massive spike in jet fuel prices. The government stated that oil marketing companies, in consultation with the Ministry of Civil Aviation, have capped the increase for domestic carriers at around 25%, instead of passing on the full burden of rising international costs.
“The move is intended to cushion the aviation sector and prevent a steep rise in airfares for passengers. Without this intervention, ATF prices in India were expected to rise by over 100% due to extraordinary global conditions.” Officials said.
The surge in fuel prices has been triggered by escalating geopolitical tensions in the Middle East, particularly disruptions linked to the closure of the Strait of Hormuz, a critical route for global oil supply. This has led to volatility in international crude oil markets, significantly impacting fuel-dependent sectors like aviation.
“In view of the expected surge of over 100% in ATF prices from April 1, PSU Oil Marketing Companies, in consultation with the Ministry of Civil Aviation, have implemented only a partial and staggered increase to mitigate the impact on domestic carriers.” Officials added.
While domestic airlines have been given partial relief, the government clarified that international flight operations will have to bear the full increase in jet fuel prices in line with global benchmarks. This means foreign carriers and international routes will not receive the same level of protection.
However, the calibrated approach is expected to reduce the immediate financial strain on Indian airlines, for whom fuel accounts for a significant portion of operating costs.
The government emphasized that this measured step will help maintain stability in the aviation sector, ensure continued connectivity, and avoid sudden fare hikes for domestic travelers, even as global energy markets remain under pressure.
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