Govt Shields Domestic Airfares From Fuel Price Hike

New Delhi (IANS): The government announced on Wednesday that domestic airfares should remain stable. Officials cushioned the impact of surging aviation turbine fuel (ATF) prices by allowing domestic airlines only a partial price increase.

The Ministry of Petroleum and Natural Gas (MoPNG) noted that India has deregulated ATF prices since 2001, revising them monthly based on international benchmarks. Current geopolitical tensions threatened to drive domestic ATF prices up by more than 100 percent starting April 1.

To protect domestic travelers from this spike, public sector oil marketing companies (OMCs) consulted with the Ministry of Civil Aviation to implement a staggered, partial increase.

The government stated that domestic airlines will manage a limited hike of roughly 25 percent—about Rs 15 per litre—rather than the full global price surge. Conversely, airlines on international routes will pay the full, market-linked price.

Union Civil Aviation Minister Ram Mohan Naidu emphasized that this strategy protects both passengers and the industry.

“This calibrated approach will shield passengers from sharp fare increases, ease the burden on domestic airlines, and support the aviation sector’s stability at this crucial juncture,” Naidu said.

He added that the move supports the broader economy by ensuring smooth cargo movement and maintaining air connectivity for trade.

Global crude oil prices have escalated recently due to tensions in West Asia. Disruptions near the Strait of Hormuz have driven up energy costs worldwide.

While jet fuel prices in the national capital did rise, a clarification from Indian Oil Corporation (IOC) confirmed the hike was less severe than initial reports suggested. The oil major clarified that ATF prices rose by approximately 8.5 percent—not 115 percent—bringing the current price to roughly Rs 1.04 lakh per kilolitre.