Price of aviation turbine fuel (ATF), or jet fuel, was more than doubled to a record ₹2.07 lakh per kilolitre on Wednesday but domestic airlines will not have to pay the steep increase as a mechanism is in works to shield them.
Alongside, commercial LPG rates were raised by ₹195.50 per cylinder, mirroring the the surge in global oil prices linked to the widening West Asia conflict.
ATF price in Delhi was hiked by ₹110,703.08 per kilolitre, or 114.5%, to ₹207,341.22 per kl, according to state-owned fuel retailers.
2 March 2026
Get the latest issue of Outlook Business
ATF being a completely deregulated product is priced at prevailing benchmark international prices. This is as per a written understanding with the airlines.
So the new rates will apply for any international airline refuelling in India from Wednesday, industry sources said.
Domestic airlines will however not have to pay the steep rates as a mechanism is in works to not pass on the entire burden on to them, they said.
It wasn't immediately known how much will domestic airlines have to pay and how much will be absorbed in some other form.
No formal announcement of the mechanism has been made so far.
This is the first time ever that the ATF price has crossed ₹2 lakh per kl mark. The previous peak was in 2022 when rates were hiked to ₹1.1 lakh per kl after oil prices surged after Russia invaded Ukraine.
This is the second monthly increase in rates. Prices on March 1 were hiked by 5.7% (₹5,244.75 per kl).
The rising prices will further strain airlines which are already burning more fuel in taking longer routes for flying to western destinations because of closure of airspace due to the war. Fuel makes up for around 40% of an airline's operating cost.
Alongside, rates of commercial LPG - one that is used by hotels and restaurants - were hiked by ₹195.50 per 19-kg cylinder.
A 19-kg commercial LPG now costs ₹2078.50 in Delhi.
Rates were last increased by ₹114.5 per 19-kg cylinder on March 1.
Domestic cooking gas LPG rates, which were last hiked by ₹60 per 14.2-kg cylinder on March 7, remain unchanged. It costs ₹913 per 14.2-kg cylinder in Delhi.
State-owned Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum revise ATF and LPG prices on the first day of every month based on international benchmarks and the exchange rate.
Global oil prices have shot up by almost 50% after the war in West Asia disrupted energy supply chains.
Petrol and diesel prices continue to remain frozen after a ₹2 per-litre reduction in March last year; petrol currently costs ₹94.72 per litre in Delhi and diesel ₹87.62.
