New Delhi, April 1
Civil Aviation Minister K Rammohan Naidu on Wednesday said the decision to impose only a partial and staggered increase in jet fuel prices for domestic airlines would help protect passengers from steep fare hikes amid mounting global energy pressures.
In a post on X, Naidu said public sector oil marketing companies had decided to raise Aviation Turbine Fuel (ATF) prices for domestic carriers by 25% — or Rs 15 per litre — instead of a much steeper increase that had been expected from 1 April.
He said the move came at a time when the aviation sector was facing “extraordinary pressure” from global energy disruptions and the closure of the Strait of Hormuz, with a rise of more than 100% in ATF prices having been anticipated.
Calling the decision “pragmatic and forward-looking”, the minister said the calibrated increase had been worked out by the Ministry of Petroleum in consultation with the Ministry of Civil Aviation. He added that while domestic airlines would face only a partial increase, foreign routes would continue to bear the full market-aligned price.
Naidu said the measure would help shield passengers from sharp increases in airfares, reduce pressure on domestic airlines and support stability in the aviation sector at a critical time.
ATF makes up around 40% of an airline’s operating costs and prices have been deregulated since 2001, with revisions linked to international benchmarks on a monthly basis.
Airlines are already under strain from rising costs linked to the conflict in West Asia. Indian carriers are also burning more fuel on several international services after being forced to take longer routes because of airspace restrictions in the region.
Naidu thanked Prime Minister Narendra Modi and Petroleum Minister Hardeep Singh Puri for what he described as a timely intervention on ATF pricing.
