India hikes jet fuel prices amid global surge

Domestic fuel retailers have increased the price of aviation turbine fuel (ATF) to 104,927 Indian rupees (approximately 1,123.72 U.S. dollars) per kiloliter, News.Az reports, citing Xinhua.

The federal government defended the move, describing the increase passed on to domestic airlines as a “partial and staggered” adjustment intended to soften the impact of the global oil price spike.

In a statement, the Ministry of Petroleum and Natural Gas explained that the closure of the Strait of Hormuz and the extraordinary conditions in global energy markets had pushed ATF prices in India to a projected rise of over 100 percent as of April 1.

To shield domestic travel from the full impact of international price increases, only a partial 25 percent increase (equivalent to INR 15 per liter) will be applied for domestic airlines, while international routes will bear the complete rise in ATF prices.

India’s Aviation Minister, Kinjarapu Rammohan Naidu, emphasized that this measured approach aims to protect passengers and the aviation sector.

“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,” he said. “It will also benefit the broader economy by ensuring the smooth movement of cargo and maintaining vital air connectivity for trade and logistics.”

The recent U.S.-Israel attacks on Iran, along with retaliatory measures, have caused a shortage of liquefied petroleum gas in India due to reduced shipping through the key oil route at the Strait of Hormuz. The closure of this sea passage has already sent global oil prices sharply higher.