New Delhi: The ongoing tensions in West Asia have begun to significantly impact fuel prices in India, with aviation turbine fuel (ATF) witnessing a sharp surge and commercial LPG rates also seeing a steep hike.
According to state-run fuel retailers, jet fuel prices have more than doubled, reaching an all-time high of Rs 2.07 lakh per kilolitre in Delhi. This marks an increase of over 114 per cent, or Rs 1.10 lakh per kilolitre, making it the highest level ever recorded. The previous peak was seen in 2022 during the global oil price spike following geopolitical tensions.
This is the second consecutive monthly increase in ATF rates, after a moderate rise earlier in March. Industry experts warn that the surge could place additional financial pressure on airlines, as fuel expenses account for nearly 40 per cent of their operating costs. The burden is further compounded by longer flight routes due to restricted airspace in conflict zones.
Alongside jet fuel, the price of commercial LPG cylinders—widely used by hotels and restaurants—has also been increased by Rs 195.50. A 19-kg cylinder now costs Rs 2,078.50 in Delhi. This follows another hike earlier in March, adding to the cost pressures faced by the hospitality sector.
However, domestic LPG prices for household cooking remain unchanged for now, offering some relief to consumers.
Fuel prices in India are revised monthly by public sector oil companies such as Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum, based on global crude oil trends and currency fluctuations.
Global oil prices have surged by nearly 50 per cent in recent weeks due to disruptions in supply chains caused by the escalating conflict in West Asia. Despite the spike in international markets, petrol and diesel prices in India have remained unchanged since a reduction announced last year.
The sharp rise in fuel costs is expected to have a ripple effect across sectors, particularly aviation and hospitality, potentially leading to higher fares and service charges in the coming weeks.
