Price of Aviation Turbine Fuel (ATF), or jet fuel, was more than doubled to a record ₹2.07 lakh per kilolitre on Wednesday, mirroring the surge in global oil prices last month, but for domestic airlines, the increase would only be 8.5%.
Domestic airlines will pay half of what other carriers such as non-scheduled, adhoc and charter would pay. For them the prices have gone up by ₹110,703.08 per kl, or 114.5%, to ₹207,341.22 per kl.
Jet fuel prices were deregulated more than two decades back, and since then, the rates are aligned with benchmark international prices, as per a written understanding with the airlines.
2 March 2026
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But since the Middle East war induced surge in global energy prices warranted a steepest increase ever to be made in the ATF prices, the government and state-owned oil companies decided to adopt a calibrated approach, industry sources said.
While foreign airlines and other carriers would pay market rates, prices for domestic airlines have been moderated, they said.
Alongside, commercial LPG rates were raised by ₹195.50 per cylinder, mirroring the surge in global oil prices linked to the widening West Asia conflict.
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 hike ₹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% (₹5244.75 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 ₹2,078.50 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.
Explaining the increase, the Ministry of Petroleum and Natural Gas in a post on X said, "ATF prices in India were deregulated in 2001 and are revised on a monthly basis based on a formula of international benchmarks." Due to the closure of 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, it said.
"In order to insulate the domestic travel costs from the substantial increase in international prices, PSU Oil Marketing Companies of the Ministry of Petroleum, in consultation with the Ministry of Civil Aviation, have passed only a partial and staggered increase of 25% (only ₹15/litre) to the airlines. Foreign routes will pay for the full increase in ATF prices consistent with what they pay in other parts of the world."
