ATF Prices Raised Across Metros from April 1: Hike Moderated for Domestic Airlines

Aviation turbine fuel (ATF) prices for domestic scheduled airlines have been revised upward across major metro cities from April 1, though the increase is significantly milder than the sharp surge initially indicated for non-scheduled operators earlier in the day.

ATF Prices Across Different Cities

In Delhi, ATF prices have risen to ₹1,04,927 per kilolitre (kL), up from ₹96,638.14 in March. Kolkata saw rates climb to ₹1,09,450 from ₹99,587.14, while Mumbai recorded an increase to ₹98,247 compared to ₹90,451.87 last month. Chennai witnessed one of the steepest hikes among metros, with prices reaching ₹1,09,873, up from ₹1,00,280.49.

Overall, the revision reflects a month-on-month increase of roughly 8–10% across metro cities, extending the upward trajectory that began in February amid strengthening global crude oil prices.

Earlier Confusion Over Sharp Spike

The Ministry of Petroleum and Natural Gas had earlier indicated that ATF prices—deregulated since 2001 and linked to global benchmarks—could rise by over 100%, driven by disruptions such as the closure of the Strait of Hormuz and heightened volatility in international energy markets.

However, to cushion the impact on domestic air travel, state-run oil marketing companies, in coordination with the Civil Aviation Ministry, opted for a calibrated and phased hike of about 25% (approximately ₹15 per litre) for domestic airlines. In contrast, international operations are expected to absorb the full extent of the increase.

This clarification followed confusion earlier in the day when pricing data released by IndianOil suggested a steep jump of more than 115% in ATF rates.

Impact on Airfares and Policy Response

The increase is likely to exert continued upward pressure on airfares, particularly during high-demand travel seasons, given that fuel costs form a substantial portion of airline expenses.

To mitigate the impact, the Civil Aviation Ministry is evaluating measures such as potential VAT reductions by states and engaging with oil marketing companies to limit refining margins (crack spreads), which have widened amid the ongoing West Asia crisis.

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