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India hikes fuel prices for international flights

New Delhi has also marginally increased energy prices for domestic routes

India has hiked aviation fuel prices for international flights amid a surge in oil prices globally due to the Middle East conflict.

    Aviation Turbine Fuel (ATF) prices have more than doubled to a record $2,220.45 per kiloliter, according to India’s Ministry of Petroleum and Natural Gas.

    ATF prices in India were deregulated in 2001 and are revised on a monthly basis, based on a formula involving international benchmarks.

    “Due to the closure of the Strait of Hormuz and extraordinary situation in global energy markets, the price of ATF for domestic markets was expected to increase by more than 100% on April 1,” the ministry said.

    ATF prices in India were deregulated in 2001 and are revised on 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…

    — Ministry of Petroleum and Natural Gas #MoPNG (@PetroleumMin) April 1, 2026

    To insulate domestic travel costs from the substantial increase in international prices, state-backed oil companies have passed on a partial and staggered increase of 25% ($0.16 per liter) to airlines operating domestic flights.

    Other carriers, including charter operators, will pay the full market rate. For them, prices have risen by $1,187.49 per kiloliter, or 114.5%, to $2,224.11 per kiloliter, the statement said.

    This is the first time ATF prices in India have crossed the $2,145.36 per kiloliter mark. The previous high was recorded in 2022, when rates climbed to around $1,179.95 per kiloliter following the Ukraine conflict.

    The federal government also hiked commercial natural gas prices by $2.09 per 19-kg cylinder in line with global trends.

    However, domestic natural gas, gasoline, and diesel prices remained unchanged.

    State-backed fuel retailers Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum normally revise ATF and liquified petroleum gas (LPG) prices on the first day of every month based on international benchmarks and exchange rates.

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