ATF Prices Rise Only 25% From April 1, Government Shields Domestic Airlines
Government caps ATF hike at 25%, easing costs for domestic airlines amid global fuel disruptions.
The Indian government has opted for a partial and staggered increase in Aviation Turbine Fuel (ATF) prices for domestic airlines, providing crucial relief to carriers amid ongoing global fuel disruptions. Starting April 1, ATF rates for domestic flights will rise by 25 percent, or Rs 15 per litre, while international routes will bear the full market-aligned price, the Ministry of Civil Aviation announced.
Civil Aviation Minister Ram Mohan Naidu described the move as “pragmatic and forward-looking,” aimed at shielding passengers from steep fare hikes and easing the financial burden on airlines. He noted that deregulated ATF prices in India, which are revised monthly based on international benchmarks, were facing extraordinary pressure due to global energy disruptions and the closure of the Strait of Hormuz. “A steep increase of over 100 percent was anticipated from April 1,” he said, underscoring the significance of the government’s intervention.
Major domestic carriers welcomed the decision, highlighting its impact on operational stability. In a statement, IndiGo said the partial ATF hike materially insulated domestic air travel costs from the sharp global fuel surge. The airline is currently reviewing its operating costs and plans to announce revised fuel charges shortly.
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Ajay Singh, head of SpiceJet, described the government’s move as “significant relief” for the Indian aviation sector. He praised the proactive intervention of the Ministry of Civil Aviation, noting that the decision would help airlines navigate unprecedented global uncertainty marked by fuel market volatility and external disruptions.
Officials emphasized that the staggered approach balances the need to align prices with global markets while minimizing the immediate financial strain on domestic carriers and passengers. The measure is also expected to sustain smooth cargo movement and maintain vital air connectivity for trade and logistics.
Industry observers said the government’s intervention highlights its commitment to supporting the aviation sector during periods of global energy instability. By cushioning domestic airlines from sudden spikes in fuel costs, the decision aims to ensure continued stability in fares, operations, and air transport infrastructure.
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