India Increases ATF Prices by 115% for Charters amid West Asia Conflict

As per The CNBCTV18 report, the Indian government has significantly risen aviation turbine fuel (ATF) prices for non-scheduled carriers and charters by 115% amid an ongoing conflict in West Asia. This substantial price hike took effect on April 1, 2026, across major cities. 

Initially, the ATF rate list on the IndianOil website did not specify whether the price hike applied to domestic airlines. However, airlines informed CNBCTV18 that the revised rates were intended for non-scheduled operators and charter flights. 

115% ATF Price Increase Across Major Cities 

The new ATF pricing structure significantly impacts non-scheduled carriers and charters while leaving scheduled domestic flights unaffected.  

From April 1, 2026, the ATF rates in Delhi are ₹2,07,341.22 per kL, compared to ₹96,638.14 last month.  

Kolkata sees prices at ₹2,05,955.33 per kL, a rise from ₹99,587.14. In Chennai, the ATF rate has risen to ₹2,14,597.66 from ₹1,00,280.49, and in Mumbai, prices are ₹1,94,968.67 compared to March's ₹90,451.87. 

Potential Impacts and Market Response 

Airfare costs are expected to increase due to this sharp ATF price rise. The Civil Aviation Minister K Rammohan Naidu reassured that India currently maintains an adequate ATF supply for approximately 60 days, as stated in the Rajya Sabha on March 30, 2026. 

Efforts to Manage Price Surges 

The Civil Aviation Ministry is actively exploring solutions to mitigate these steep ATF price increases. Discussions involve encouraging states to lower VAT on ATF, facilitating reduced cost pressures for airlines.  

Additionally, airlines and oil marketing companies are seeking to cap ATF crack spreads between $10-$22 per barrel. 

Read More: UDAN 2.0: Cabinet Approves ₹28,840 Crore to Expand Regional Aviation Network, Targets 100 New Airports! 

Refining Margins and Economic Implications 

The refining margin, known as crack spread, has sharply increased due to the West Asia crisis, creating further economic implications. Typically, this margin averages $15-$30 per barrel but recently spiked beyond $70 per barrel. 

Conclusion 

The Indian government's decision to increase ATF prices for non-scheduled carriers and charters by 115% amid the West Asia conflict has led to speculation about rising airfare costs and efforts to manage these challenges through VAT reductions and capping of crack spreads. 

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