NEW DELHI: The decision by PSU Oil Marketing Companies, under the Ministry of Petroleum in consultation with the Ministry of Civil Aviation, to implement only a partial and staggered increase of 25% (Rs 15 per litre) in Aviation Turbine Fuel (ATF) for domestic airlines from April 1 is both pragmatic and forward-looking, while ensuring that foreign routes bear the full market-aligned price, said Civil Aviation Minister Ram Mohan Naidu.
In an official statement on the rollback, Naidu said, "With ATF prices in India, deregulated since 2001 and revised monthly based on international benchmarks, facing extraordinary pressure due to global energy disruptions and the closure of the Strait of Hormuz, a steep increase of over 100% was anticipated from 1 April."
He added, "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. It will also benefit the broader economy by ensuring the smooth movement of cargo and maintaining vital air connectivity for trade and logistics."
In a statement, IndiGo said, "The ongoing geopolitical situation in the Middle East has significantly affected the global supply of Aviation Turbine Fuel, resulting in continuous and steep increases in its prices. We would like to thank the government for materially insulating domestic air travel costs from the substantial rise in ATF prices and for implementing a partial and staggered increase of 25%."
IndiGo is reviewing the impact of the revised ATF price, effective 1 April 2026, on its operating costs and will announce its revised fuel charges shortly.
Ajay Singh, Chairman and Managing Director of SpiceJet, said in a statement:
"The Government’s decision to allow only a partial increase in ATF prices comes as significant relief for the Indian aviation industry at a time of unprecedented global uncertainty.
We sincerely thank the Union Minister of Civil Aviation, Shri Ram Mohan Naidu Kinjarapu, and the Secretary, Ministry of Civil Aviation, Samir Sinha, for their leadership and proactive intervention in securing a moderated adjustment to ATF prices.
Their timely intervention will go a long way in helping airlines navigate one of the most challenging global crises in recent times, marked by severe external disruptions and volatility in fuel markets.
The Government has, time and again, demonstrated strong and reassuring leadership, steering Indian aviation through global headwinds with clarity and resolve. This decision once again reinforces that commitment," the statement added.