Government Intervenes to Curb Domestic Flight Ticket Price Surge Amid Rising Fuel Costs
Significant Relief for Domestic Air Travelers
New Delhi: Domestic air travelers have received a crucial reprieve as the government intervenes to mitigate a potential spike in flight ticket prices, despite escalating global fuel expenses. The Ministry of Petroleum and Natural Gas announced that due to the closure of the Strait of Hormuz and the extraordinary circumstances in global energy markets, the price of Aviation Turbine Fuel (ATF) for domestic markets was anticipated to rise by over 100% on April 1. To shield domestic travel costs from this significant increase in international prices, Public Sector Undertaking (PSU) Oil Marketing Companies, in collaboration with the Ministry of Civil Aviation, have implemented only a partial and staggered increase of 25% (equivalent to Rs. 15 per litre) for airlines. In contrast, international routes will incur the full increase in ATF prices, consistent with global rates.
Following this decision, state-run oil companies revised their previous price announcement and released new ATF rates, effective from April 1, 2026, withdrawing the earlier rates.
Updated ATF Prices (per kilolitre)
- Delhi: Rs 1,04,927
- Kolkata: Rs 1,09,450
- Mumbai: Rs 98,247
- Chennai: Rs 1,09,873
This adjustment means that airlines operating domestic flights will only experience a limited increase in fuel costs for the time being.
ATF prices in India were deregulated in 2001 and are revised on a monthly basis based on a formula of international benchmarks. Due to the closure of the Strait of Hormuz and extraordinary situation in global energy markets, price of ATF for domestic markets was expected to increase by…
— Ministry of Petroleum and Natural Gas #MoPNG (@PetroleumMin) April 1, 2026
Previously, there were concerns regarding a significant surge in jet fuel prices. ATF rates for domestic flights were projected to increase by approximately 115%, while fuel costs for international flights were expected to rise by around 107%. Notably, prior to government intervention, ATF prices in Delhi for domestic flights had surpassed Rs 2 lakh per kilolitre for the first time. For international routes, fuel costs also exceeded $1,000 per kilolitre, marking another record high. By permitting only a partial increase for domestic airlines while imposing the full cost on international routes, the government aims to maintain affordable air travel within India, even amidst the volatility of global energy markets.