Govt caps jet fuel hike; premium fuel, commercial LPG prices jump

The Union Government on Wednesday capped the hike in jet fuel prices for domestic airlines while State-owned Oil Marketing Companies (OMCs) increased the price of commercial LPG and premium fuel. Prices of domestic LPG cylinders and normal fuel remains unchanged

The Government limited the increase in ATF prices for domestic airlines to 25 per cent while the price of commercial LPG was increased by INR 195.50 per 19-kg cylinder by OMCs. A 19-kg commercial LPG now costs INR 2,078.50 in Delhi. Rates were last increased by INR 114.5 per 19-kg cylinder on March 1.

Additionally, price of premium petrol and diesel, which make up for 2-5 per cent of all auto fuels sold in the country, too was increased by INR 1.50 a litre from INR 91.49 to  INR 92.99 for 100 octane petrol and for Extra Green diesel by INR 11 to INR 160 a litre .

Explaining the rationale for the jet fuel price hike, the Ministry of Petroleum and Natural Gas, in a post on X, wrote, ATF prices in India were deregulated in 2001 and are revised on a monthly basis based on a formula of international benchmarks. Price of Aviation Turbine Fuel (ATF) has surged by over 100 per cent in recent days with escalating tensions in West Asia.

The ministry explained that the decision comes in response to an “extraordinary situation in global energy markets,” triggered by the closure of the Strait of Hormuz. To prevent a steep rise in airfares, public sector OMCs, in consultation with the Ministry of Civil Aviation, implemented only a partial and staggered increase.

“In order to insulate the domestic travel costs from the substantial increase in international prices, PSU Oil Marketing Companies of the Ministry of Petroleum, in

consultation with Ministry of Civil Aviation, have passed only a partial and staggered increase of 25 per cent (only INR 15/litre) to the airlines,” the Ministry added on X.

However, the government clarified that international flight operations will not receive similar relief. “Foreign routes will pay for the full increase in ATF prices consistent with what they pay in other parts of the world,” the statement added.Jet fuel prices have risen by over two times to INR 2.07 lakh per kilolitre (kL) from INR 96,638.14/kL.

The prices of jet fuel were hiked by 5.7 per cent (INR 5,244.75/kL) on March 1 as well. Separately, ATF price for domestic airlines was hiked by 8.6 per cent to INR 1.04 lakh/kL. Indian Oil revised the hike in the ATF prices in metros for domestic airlines in Delhi from INR 96,638.14/kL on March 1, 2026 to INR 1,04,927/kL on April 1, 2026.

The rising prices will further strain airlines which are already burning more fuel in taking longer routes for flying to western destinations because of closure of airspace due to the war. Fuel makes up for around 40 per cent of an airline’s operating cost. Significantly, this is the first time ever that aviation turbine fuel (ATF) prices have crossed INR 2 lakh per kl-mark. The earlier peak was in 2022 when rates were hiked Rs 1.1 lakh per kl after oil prices surged following Russia’s military operation in Ukraine.