Fact Check: Did Jet Fuel Prices Double Overnight To Cross Rs 2 Lac for First Time? ATF Price Hike Explained

Among the fresh round of price hikes on April 1st, including commercial LPG & premium petrol and diesel, the aviation turbine fuel or the ATF prices were also revised. Well, the initial report suggested that the jet fuel prices in India crossed the Rs 2 lakh mark for the first time ever. Let's find out what actually happened.

Did ATF prices really cross Rs 2 lakh?

The short answer is yes but only briefly and not in practical terms for domestic airlines.

On Wednesday morning, state-run Indian Oil Corporation revised ATF prices in Delhi to Rs 2.07 lakh per kilolitre, making a record spike. However, this sharp increase was quickly adjusted, and the effective price for domestic airlines was brought down to around Rs 1.04 lakh per kilolitre. So while the Rs 2 lakh mark was technically touched, it was not sustained nor fully passed on to domestic carriers.

What is the current ATF price in India?

As per the latest revision ATF price in Delhi is Rs 1,04,927 per kilolitre. The Monthly increase is Rs 8,289 that is around 8.5% hike. The Previous price was Rs 96,638 per kilolitre.

Why did jet fuel prices spike?

The Ministry of Petroleum and Natural Gas said in an X post, "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 1 April."

Why were domestic airlines protected

To avoid a sudden spike in airfares, the government stepped in. Under the guidance of the Ministry of Petroleum and Natural Gas and the Ministry of Civil Aviation, oil companies adopted a calibrated pricing approach.

Instead of passing the full increase Only a partial hike of around 25% (about Rs 15/litre) was passed to domestic airlines International routes will bear the full increase, aligning with global pricing

Foreign routes will pay for the full increase in ATF prices consistent with what they pay in other parts of the world.

LPG and fuel price hikes add pressure

The ATF revision comes alongside other fuel price changes Commercial LPG cylinder prices increased by Rs 195.5 in Delhi and Premium petrol and diesel prices also saw hikes