Amid rising tensions affecting the Strait of Hormuz, global oil prices have surged sharply, triggering a massive spike in aviation turbine fuel (ATF) rates worldwide. Initial reports suggested that jet fuel prices in India could more than double, raising fears of a major increase in airfares.
Government Steps In to Limit Impact
The Ministry of Petroleum and Natural Gas clarified that domestic airlines will not face the full brunt of the global price surge. Instead of a steep hike, only a partial and staggered increase has been passed on.
Oil Marketing Companies (OMCs) revised their earlier announcement and released updated ATF rates effective April 1. Prices now stand at ₹1,04,927 per kilolitre in Delhi, ₹1,09,450 in Kolkata, ₹98,247 in Mumbai, and ₹1,09,873 in Chennai.
How Much Prices Actually Increased
While global rates indicated a possible 100% jump, domestic airlines will see only about an 8.5% increase. This translates to roughly ₹15 per litre, far lower than what international markets are witnessing.
However, foreign airlines and charter operators will have to pay the full market-linked price, which has surged beyond ₹2 lakh per kilolitre, reflecting the actual global increase.
Why the Price Hike Was Controlled
ATF prices in India are deregulated and usually revised monthly based on international benchmarks. But due to the extraordinary global situation, the government intervened to avoid a sudden burden on passengers.
Will Flight Tickets Become Expensive?
For now, passengers may only see a slight increase in airfares instead of a major spike. The controlled hike is expected to protect the common traveller from immediate price shocks.
However, if global oil prices continue to rise, airlines may gradually pass on additional costs to customers in the coming months.
