NEW DELHI: The impact of the West Asia war between Iran and Israel has started taking a toll in India, as the country has significantly increased the prices of commercial LPG cylinders, Aviation Turbine Fuel (ATF), and premium petrol and diesel on Wednesday.
For the first time, Aviation Turbine Fuel (ATF), or jet fuel—which constitutes 40% of the total operational expenditure of airlines—was more than doubled, rising 115% to a record ₹2.07 lakh per kilolitre on Wednesday from March levels. However, for domestic airlines, the price hike was capped at 25%, with the government allowing only a partial pass-through to prevent a steep rise in airfares in the country. According to oil marketing companies, ATF for domestic airlines in Mumbai is ₹98,247 per kilolitre, against the full price of ₹1.95 lakh.
However, international or charter operators will have to bear the full impact, with the price of ATF in Delhi jumping 107% to $1,690.81 per kilolitre. According to the petroleum ministry, due to the closure of the Strait of Hormuz and the extraordinary situation in global energy markets, the price of ATF for domestic markets was expected to increase by more than 100% on April 1 for all users.
“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 Strait of Hormuz and extraordinary situation in global energy markets, price of ATF for domestic markets was expected to increase by more than 100% on 1 April. In order to insulate the domestic travel costs from the substantial increase in international prices, PSU Oil Marketing Companies of the Ministry of Petroleum, in consultation with Ministry of Civil Aviation (MoCA), have passed only a partial and staggered increase of 25% (only Rs.15/litre) to the airlines. Foreign routes will pay for the full increase in ATF prices consistent with what they pay in other parts of the world,” the MoPNG posted on social media platform X.
The government also increased commercial LPG rates, raising prices by ₹195.50 per cylinder, along with a ₹2 per litre hike in XP95, Power95, and Speed fuels. A 5-kg mini cylinder has become costlier by ₹51.
A 19-kg commercial LPG cylinder now costs ₹2,078.50 in Delhi. Rates were last increased by ₹114.5 per 19-kg cylinder on March 1.
Domestic cooking gas LPG rates, which were last hiked by ₹60 per 14.2-kg cylinder on March 7, remain unchanged. It costs ₹913 per 14.2-kg cylinder in Delhi.
The government cited the ongoing war as the reason, which has disrupted cargo movement through the Strait of Hormuz, a vital choke point that transports 40% of India’s crude oil imports, over 50% of its LNG imports, and 90% of its LPG.
According to the petroleum ministry, current commercial consumption of LPG accounts for less than 10% of the total LPG consumed in the country. Moreover, the increase in commercial cylinder prices is due to a 44% surge in the Saudi Contract Price, from $542/MT in March to $780/MT for April, as 20–30% of global LPG supplies are stuck in the Strait of Hormuz. The ministry also said that oil marketing companies are incurring under-recoveries of ₹380 per cylinder.
“Prices of Commercial LPG cylinders, used by industries and hotels, are deregulated, market determined and revised normally on a monthly basis… At current prices, OMCs are incurring under recovery of Rs 380/cylinder. Cumulative losses by end-May will reach approximately Rs 40,484 crore. Last year also, out of total losses of Rs 60,000 crore, Rs 30,000 crore were absorbed by Oil PSUs and Rs 30,000 crore by Government of India, in order to insulate the Indian citizen from high international LPG prices,” said the petroleum ministry in a social media post on X.
On the hike in premium petrol, the ministry said that such fuels are purchased by motorists at a premium by choice. However, regular petrol and diesel prices—the fuels that India runs on—remain unchanged at ₹94.77 per litre and ₹87.67 per litre in Delhi. It also mentioned that with petroleum prices rising by up to 100% in the last one month, PSU OMCs are incurring under-recoveries of ₹24.40 per litre on petrol and ₹104.99 per litre on diesel at the retail selling price level as on April 1, 2026.
“With global petroleum prices up by upto 100% in the last 1 month, PSU OMCs are incurring under-recoveries of Rs 24.40/litre on petrol and Rs 104.99/litre on diesel at RSP level as on 01.04.2026,” said the ministry in a social media post.
State-owned Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum revise ATF and LPG prices on the first day of every month based on international benchmarks and the exchange rate.