NEW DELHI: Airfares are set to get even more pricier as IndiGo has revised fuel charges on domestic and international routes for all new bookings made after 0001 hours on April 2, 2026. The move by the country’s largest airline comes after the oil marketing companies (OMCs) revised aviation turbine fuel (ATF) prices on Wednesday.
It also comes despite the joint secretary at the civil aviation ministry Asangba Chuba Ao’s remark that the government's decision on a limited hike of jet fuel price ensures that carriers' domestic operational costs remain manageable and will not lead to additional fuel surcharge.
IndiGo had last month introduced a fuel surcharge between Rs 399 and Rs 2,300 for domestic and international flights as the ongoing conflict in West Asia triggered a sharp rise in energy prices.
The fresh revision, which is now based on distance travelled, takes the fuel surcharge up to Rs 950 (above 2000 km) for domestic flights and up to Rs 10,000 for flights to Europe and the UK (other than Greece and Turkey). It is expected that other airlines will also revise their fuel surcharge.
The revised fuel charge will inflate ticket prices even as airfares have gone up by 15-20% in the last month, as per industry estimates.
IATA’s Jet Fuel Monitor indicates an over 130% increase in fuel prices for the region on a month-on-month comparison. Jet fuel is the biggest expense for airlines, accounting for 35% to 40% of total operating costs.
For the first time, ATF or jet fuel rose 115% to a record Rs 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 Rs 98,247 per kilolitre, against the full price of Rs 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 USD 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.
Aviation minster Ram Mohan Naidu stated that in this challenging context, 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/litre) for domestic airlines is both pragmatic and forward-looking, while ensuring that foreign routes bear the full market-aligned price.
“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,” added Naidu.
For International Operations, IndiGo said that ATF prices have more than doubled in the last month, consequently driving a significant impact on the airline’s operating costs on these routes. Although fully offsetting the fuel price increase would require substantial fare revisions, IndiGo has passed on a relatively smaller amount to customers keeping in mind the consequential burden on them, added the carrier.