India Raises Aviation Fuel Costs for International Flights

(MENAFN) India has sharply raised aviation fuel costs for international routes as soaring global oil prices, driven by escalating Middle East tensions, upend energy markets worldwide.

Aviation Turbine Fuel (ATF) prices have surged to a record $2,220.45 per kiloliter — more than double their previous levels — according to India's Ministry of Petroleum and Natural Gas. The spike marks the first time in history that ATF rates in the country have breached the $2,145.36 per kiloliter threshold. The previous record, set in 2022 in the wake of the Ukraine conflict, stood at approximately $1,179.95 per kiloliter.

"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.

To shield domestic air travelers from the full weight of the price shock, government-backed oil companies opted for a phased, partial increase of 25% — equivalent to $0.16 per liter — for airlines operating within India. Charter operators and other carriers, however, will absorb the complete market-rate adjustment, facing a 114.5% jump of $1,187.49 per kiloliter, bringing their costs to $2,224.11 per kiloliter.

ATF pricing in India has been deregulated since 2001, with rates recalibrated monthly using international benchmark formulas. State-owned fuel giants Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum carry out these revisions on the first of each month, factoring in global market rates and prevailing exchange rates.

Beyond aviation fuel, the federal government also raised commercial liquified petroleum gas (LPG) prices for natural gas cylinders by $2.09 per 19-kg unit, consistent with broader global energy trends. Retail prices for domestic natural gas, gasoline, and diesel, however, remain unchanged for now.

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