Jet fuel, or ATF, for domestic carriers was increased by Rs 8,289.04 per kilolitre (8.56 per cent) to Rs 1,04,927.18 per kl, up from Rs 96,638.14 per kl last month, according to state-owned oil companies.
However, the hike was moderated despite a sharp surge in global crude prices. For foreign airlines and non-scheduled operators, ATF prices more than doubled—rising by Rs 1,10,703.08 per kl (114.5 per cent) to Rs 2,07,341.22 per kl.
The government said only a partial increase was passed on to domestic airlines to shield them from the full impact of rising global oil prices. International crude has climbed above USD 100 per barrel in the past month amid the West Asia conflict.
Officials explained that while the increase in base ATF prices was around 25 per cent, the final retail hike appeared lower due to the inclusion of taxes and levies. The calibrated approach aims to keep airline operating costs manageable and prevent a sharp rise in airfares.
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Civil Aviation Ministry officials said the move would help avoid additional fuel surcharges on tickets and support stability in the aviation sector, where fuel accounts for nearly 40 per cent of operating costs. Airlines are already under pressure due to longer flight routes to Western destinations.
The Ministry of Petroleum and Natural Gas noted that ATF prices in India have been deregulated since 2001 and are revised monthly based on global benchmarks. It added that the current situation—particularly disruptions around the Strait of Hormuz—had warranted a much steeper hike, which was deliberately softened for domestic carriers.
Commercial LPG prices hiked too
Alongside ATF, prices of commercial LPG—used by hotels and restaurants—were raised by Rs 195.50 per 19-kg cylinder. In Delhi, a commercial cylinder now costs Rs 2,078.50. This follows a previous increase of Rs 114.50 on March 1. Domestic cooking gas LPG prices, however, remain unchanged at Rs 913 per 14.2-kg cylinder in Delhi, despite under-recoveries faced by oil marketing companies.
The government said commercial LPG prices rose due to a 44 per cent jump in the Saudi Contract Price, from USD 542 per tonne in March to USD 780 per tonne for April, as a significant portion of global LPG supplies remains disrupted.
Oil companies are currently incurring losses of about Rs 380 per domestic LPG cylinder by holding prices steady. Cumulative losses are expected to rise sharply, as they continue to absorb part of the global price shock to protect consumers.
Meanwhile, prices of regular petrol and diesel remain unchanged at Rs 94.72 and Rs 87.62 per litre, respectively, in Delhi. However, select premium fuels saw increases—‘Extra Green’ diesel rose by Rs 1.50 per litre, while 100-octane petrol (XP100) jumped by Rs 11 per litre.
The government emphasised that premium fuels account for only 2–5 per cent of total sales and are purchased voluntarily, while regular fuels continue to be sold at stable prices despite a steep rise in global energy costs.
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