Amid elevated global crude prices, state-run oil marketing companies have nearly doubled aviation turbine fuel (ATF) prices for April, raising costs sharply for airlines.
In the national capital, the price of ATF for domestic airlines has been hiked to ₹207,341.22 per kilolitre with effect from 1 April — up 114% from ₹96,638.14 in March.
The price increase comes amid a surge in global crude since the war between the US, Israel and Iran began on 28 February, and the subsequent blockade of the by Iran — a key choke point for about 20% of global oil trade.
The steep rise in ATF, which accounts for 35–45% of an airline’s operating costs, could squeeze margins and push up ticket prices just as peak summer travel begins.
Metro rates
Prices in Kolkata, Mumbai and Chennai now stand at ₹205,955.33, ₹194,968.67 and ₹214,597.66 per kilolitre, up from ₹99,587.14, ₹90,451.87 and ₹1,00,280.49 per kilolitre, respectively, according to data on Indian Oil Corp’s website.
Similarly, the price of jet fuel for domestic airlines on international run with effect from Wednesday in Delhi stands at $1,690.81 per kilolitre, higher than $816.91 per kilolitre in March.
ATF prices are usually revised by the at the start of every month. This is the first revision in ATF prices by Indian OMCs since the start of the war.
Around 7:40 AM, the May contract of Brent on the Intercontinental Exchange was trading at $105.79, higher by 1.73% from its previous close. The May contract of West Texas Intermediate on the NYMEX rose 1.52% to $102.92 a barrel.
LPG hike again
Commercial cooking gas prices have also been raised by around ₹200 with effect from Wednesday, marking the second hike in commercial LPG in a month.
In Delhi, a 19-kg LPG cylinder now costs ₹2,078.50, up ₹195.5 since the last revision on 7 March.
In Kolkata, Mumbai and Chennai, the price of a 19-kg commercial LPG cylinder stands at ₹2,208, ₹2,031 and ₹2,246, compared with ₹1,990, ₹1,835 and ₹2,043, respectively.
Domestic LPG prices, however, have not been increased.
is used by restaurants, hotels and industries, and the hike may have inflationary implications. Similarly, the surge in jet fuel prices is expected to reflect in higher airfares.
As LPG supplies are highly dependent on imports from West Asia, the government has already prioritized supplies to domestic households and curtailed supplies for commercial customers.
Currently, about 70% of the average consumption is allocated for supplies to commercial consumers. Early last month, it was kept at 10%. However, amid concerns over supply constraints for businesses, the allocation has been gradually increased.
The government has also urged households, hotels and industries to shift to piped natural gas, where feedstock availability remains more comfortable.
India consumes about 33.2 million tonnes of LPG annually, of which 60–65% is imported. West Asian countries account for about 90% of these imports.