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India implements 'partial and staggered' increase for domestic flights
International flights, however, will have to pay for the full increase in aviation fuel prices that has gone up by nearly 115 per cent over the past month
- PUBLISHED: Wed 1 Apr 2026, 12:42 PM
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Despite the surge in international price of jet fuels, the Indian government has opted for a “partial and staggered” increase for scheduled domestic airlines. Those operating internationally, however, will have to pay the market price for aviation turbine fuel (ATF).
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On Wednesday, after state-owned giant Indian Oil doubled ATF prices, the government intervened and slashed it by half for the domestic sector.
“ATF prices in India were deregulated in 2001 and are revised on monthly basis based on a formula of international benchmarks,” India’s Ministry of Petroleum and Natural Gas (MoPNG) posted on X. “Due to the closure of Strait of Hormuz and extraordinary situation in global energy markets, price of ATF for domestic markets was expected to increase by more than 100 per cent on 1 April.”
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MoPNG added that to insulate domestic travel costs from the substantial increase in international prices, state-owned oil marketing companies of the Ministry of Petroleum, in consultation with Ministry of Civil Aviation (MoCA), passed only “a partial and staggered increase of 25 per cent (only Rs.15/litre) to the airlines.”
But those operating on foreign routes will pay for the full increase in ATF prices consistent with what they pay in other parts of the world, it added. This has gone up by nearly 115 per cent over the past one month.
Jet fuel adds up to more than 40 per cent of operating costs for Indian carriers.
Pragmatic and forward-looking
Ram Mohan Naidu, India’s civil aviation minister, described the move for partial pass-on of ATF hikes for scheduled domestic flights as “both pragmatic and forward-looking, while ensuring that foreign routes bear the full market-aligned price”.
In a post on X, the minister said: “This calibrated approach will help shield passengers from sharp fare increases, ease the burden on domestic airlines, and support the continued stability of the aviation sector at this crucial juncture. It will also benefit the broader economy by ensuring the smooth movement of cargo and maintaining vital air connectivity for trade and logistics”.
Indian carriers, including IndiGo, Air India and Akasa Air have, however, hiked fuel surcharges on tickets by Rs200 (Dh7.86) for domestic flights and $200 (Dh734.5) for long-haul international operations.
