Jet fuel prices up 8.5%, not 115%, domestic airlines shielded, IOC clarifies

State-owned Indian Oil Corporation (IOC) on Wednesday clarified that the increase in aviation turbine fuel (ATF) prices for domestic airlines is limited to about 8.5%, and not the 114–115% jump that was reflected earlier due to a pricing notification.

According to IOC, ATF for domestic carriers has risen by roughly 20–25% in operational terms, with the effective price now around ₹1.04 lakh per kilolitre, significantly lower than the ₹2.07 lakh per kl rate that applies to foreign and non-scheduled operators.

The clarification comes after confusion arose when state-run fuel retailers published revised ATF prices showing a sharp spike to ₹2,07,341.22 per kl in Delhi, a record high. IOC said this higher benchmark rate is applicable only to international airlines and non-scheduled carriers refuelling in India.


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The company added that its official website reflects the corrected pricing for domestic airlines.

However, the Ministry of Petroleum and Natural Gas, in consultation with the Ministry of Civil Aviation and public sector oil marketing companies, implemented a partial and staggered increase to shield domestic carriers from the full impact.

The ministry further added, “ATF prices in India are deregulated and revised monthly in line with international benchmarks and exchange rates. The sharp spike in global oil prices, driven by disruptions linked to the ongoing West Asia conflict and closure of key routes such as the Strait of Hormuz, had initially indicated a potential increase of over 100%.”

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In addition, the Union Minister of Civil Aviation Ram Mohan Naidu posted on X, "With ATF prices in India, deregulated since 2001 and revised monthly based on international benchmarks, facing extraordinary pressure due to global energy disruptions and the closure of the Strait of Hormuz, a steep increase of over 100% was anticipated from 1 April. 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."

He added, "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. It will also benefit the broader economy by ensuring the smooth movement of cargo and maintaining vital air connectivity for trade and logistics."

Reacting to the partial increase in ATF prices, airlines including Spicejet and IndiGo reacted.

Ajay Singh, Chairman and Managing Director of SpiceJet, said the government’s decision to allow only a partial increase in ATF prices comes as a major relief for the aviation sector amid global uncertainty. He thanked Civil Aviation Minister Ram Mohan Naidu Kinjarapu and Civil Aviation Secretary Samir Sinha for their timely intervention, noting that the moderated hike would help airlines navigate a challenging period marked by volatility in global fuel markets and external disruptions.

In a statement, IndiGo thanked Prime Minister Narendra Modi for the decision, calling it a significant step for the aviation sector. The airline also expressed appreciation to the Ministry of Civil Aviation and the Ministry of Petroleum and Natural Gas, saying the move would bring greater stability to the industry and help airlines pass on the benefits through more affordable travel for passengers.

This marks the second consecutive monthly hike in ATF prices. Fuel accounts for nearly 40% of an airline’s operating costs, and the increase comes at a time when airlines are already facing higher expenses due to longer flight routes amid regional airspace restrictions.


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The war in the Middle East between the US, Israel and Iran has thrown the global energy market into turmoil, with the near-total closure of the key waterway choking off exports. Crude oil has surged on the widening disruption, while product prices, including jet fuel, have rallied even more.

Alongside ATF, prices of commercial LPG used by hotels and restaurants were also raised by ₹195.50 per 19-kg cylinder in Delhi, now costing ₹2,078.50. Domestic cooking gas prices, however, remain unchanged.

With inputs from PTI and Bloomberg