The Centre on Wednesday stepped in to moderate the impact of rising jet fuel costs on domestic carriers, amid global energy pressures linked to the conflict in West Asia. Aviation Turbine Fuel (ATF) prices in Delhi had briefly been revised to ₹2.07 lakh per kilolitre for April by Indian Oil Corporation, before being brought down to around ₹1.04 lakh per kl following consultations between public sector oil marketing companies and the Ministry of Civil Aviation.
Officials said a full pass-through in line with global trends would have pushed domestic ATF prices up by over 100 percent from April 1. Instead, the government opted for a calibrated approach, allowing only a partial increase to limit the impact on fares. Under the revised framework, domestic airlines will face a restricted increase of around 25 percent, while carriers operating international routes will bear the full rise in fuel costs in line with market-linked pricing.
Civil Aviation Minister Ram Mohan Naidu said the decision is aimed at maintaining fare stability and supporting the aviation sector during a period of volatility. He added that the move would help avoid sharp fare increases while ensuring continuity in cargo movement and air connectivity.
