India, Taiwan raise fuel costs as energy disruptions spread

State-owned oil marketing companies, in consultation with the Civil Aviation Ministry, have implemented a “partial and staggered” 25% increase in aviation turbine fuel (ATF) prices for airlines, according to an official statement posted on social media platform X, News.Az reports, citing Turkish media.

The ministry said India sources nearly 50% of its energy supplies from the Middle East, worth about $180 billion in 2024. It added that international routes will bear the full impact of the price increase, while domestic airlines will see a smaller 8.5% rise, according to Press Trust of India.

The government also raised commercial liquefied petroleum gas (LPG) prices, citing a 44% surge in Saudi contract prices. Officials warned that 20–30% of global LPG supplies are affected by disruptions in the Strait of Hormuz, a key global energy transit route impacted by the conflict.

In Taiwan, airlines are preparing to raise fares after the government increased fuel surcharges on both short- and long-haul international flights due to rising crude oil prices linked to the Middle East situation. The new surcharges will take effect on April 7.

Fuel costs account for around 40% of airline operating expenses, making carriers highly sensitive to global oil price shifts. Taiwan imports about 40% of its energy supplies from the Middle East, valued at roughly $47 billion in 2024.

Meanwhile, the Philippines has opened diplomatic talks with Iran to ensure safe passage of fuel shipments through the Strait of Hormuz.

Manila, which relies heavily on Middle East energy imports worth around $16 billion annually, has declared a state of emergency to safeguard its energy security amid ongoing regional instability.

The developments highlight growing pressure on Asian economies as energy markets face renewed volatility driven by geopolitical tensions.