New Delhi: Union Civil Aviation Minister Ram Mohan Naidu on Wednesday said the government has adopted a balanced approach in revising aviation turbine fuel (ATF) prices, aiming to protect both airlines and passengers amid global energy disruptions.
In a statement, the minister noted that ATF prices in India—deregulated since 2001 and linked to international benchmarks—were under severe pressure due to ongoing geopolitical tensions and disruptions in global supply chains, particularly around the strategically important Strait of Hormuz. Given these conditions, a sharp spike in fuel rates from April 1 was widely expected.
However, instead of a full-scale increase, public sector oil marketing companies implemented a staggered hike of about 25 per cent for domestic carriers. International routes, meanwhile, will continue to reflect market-linked pricing.
Naidu described the decision as “pragmatic and forward-looking,” stating that it would help cushion domestic airlines from sudden cost shocks while maintaining operational stability in the aviation sector.
He also expressed gratitude to Narendra Modi and Petroleum Minister Hardeep Singh Puri for their intervention, calling it timely and considerate.
According to the minister, the calibrated pricing strategy is expected to prevent a steep rise in airfares, thereby protecting passengers. It will also support airlines dealing with higher operational costs and ensure uninterrupted cargo movement and connectivity, both of which are crucial for trade and economic activity.
The move comes at a time when the aviation industry is navigating uncertainties triggered by global conflicts and fluctuating fuel prices, with the government seeking to strike a balance between market realities and sectoral stability.
