Jet fuel prices on Wednesday (Apr 1) have breached the Rs 2 lakh per kilolitre mark for the first time since the war in West Asia began. The new Aviation Turbine Fuel (ATF) prices have been revised from April 1 in major cities. The fare has more than doubled to a record high of Rs 2.07 lakh per kilolitre. Meanwhile, commercial LPG rates were raised by Rs 195.50 per cylinder, amid the global energy crisis triggered by the Iran war.According to a PTI report, this is the first time that ATF prices have crossed the Rs 2 lakh per kl-mark. The last time the rates peaked was after Russia’s invasion of Ukraine, when the prices hiked to Rs 1.1 lakh per kl due to a global oil price surge.In Delhi, the ATF price was hiked by Rs 110,703.08 per kilolitre, or 114.5 per cent, to Rs 207,341.22 per kl, according to state-owned fuel retailers. Earlier, on March 1, the prices were hiked by 5.7 per cent (Rs 5,244.75 per kl) right after the war broke out on February 28, after US and Israeli forces launched strikes on Iran.<h2>What has government said?</h2>In a statement on X, the Ministry of Petroleum and Natural Gas said, “ATF prices in India were deregulated in 2001 and are revised on monthly basis based on a formula of international benchmarks. Due to the closure of Strait of Hormuz and extraordinary situation in global energy markets, price of ATF for domestic markets was expected to increase by more than 100% on 1 April.”It added, “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 Ministry of Civil Aviation, have passed only a partial and staggered increase of 25% (only Rs.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.”<h2>Will flights get costly?</h2>The sharp rise in prices is expected to further raise the flight fares, which have already suffered as airlines have to take longer routes for Western destinations due to airspace closure in the Gulf region. Fuel makes up about 40 per cent of an airline’s operating cost.Meanwhile, prices of commercial LPG were hiked by Rs 195.50 on Wednesday (Apr 1). A 19-kg commercial LPG will now cost Rs 2,078.50 in Delhi, according to state-owned oil companies.<h2>Why are global fuel prices surging?</h2>Since the war broke out in West Asia after the US and Israel launched strikes on Iran on February 28, hostilities have continued to rise for a month now. Iran responded by retaliating across the Gulf, striking US and Israeli targets. Tehran has also blocked the strategic Strait of Hormuz, which is vital for global oil supplies. The Strait of Hormuz is the only maritime outlet for ports located in the Persian Gulf. Its blockage has significantly affected global energy supply, triggering a sharp rise in oil prices.Disclaimer: WION takes utmost care to accurately and responsibly report ongoing conflicts in West Asia involving Israel, Iran, the US, Gulf nations and non-state actors like Hezbollah, Hamas, Houthis, Islamic State, and others. Claims and counterclaims, disinformation and misinformation are being made online and offline. Given this context, WION cannot independently verify the authenticity of all statements, social media posts, photos and videos.

India’s jet fuel hit a record Rs 2.07 lakh/kl after a 114% surge, driven by the West Asia war. With fuel accounting for about 40% of airline costs, airfares are likely to rise further.

Jet fuel prices on Wednesday (Apr 1) have breached the Rs 2 lakh per kilolitre mark for the first time since the war in West Asia began. The new Aviation Turbine Fuel (ATF) prices have been revised from April 1 in major cities. The fare has more than doubled to a record high of Rs 2.07 lakh per kilolitre. Meanwhile, commercial LPG rates were raised by Rs 195.50 per cylinder, amid the global energy crisis triggered by the Iran war. According to a PTI report, this is the first time that ATF prices have crossed the Rs 2 lakh per kl-mark. The last time the rates peaked was after Russia’s invasion of Ukraine, when the prices hiked to Rs 1.1 lakh per kl due to a global oil price surge. In Delhi, the ATF price was hiked by Rs 110,703.08 per kilolitre, or 114.5 per cent, to Rs 207,341.22 per kl, according to state-owned fuel retailers. Earlier, on March 1, the prices were hiked by 5.7 per cent (Rs 5,244.75 per kl) right after the war broke out on February 28, after US and Israeli forces launched strikes on Iran. What has government said? In a statement on X, the Ministry of Petroleum and Natural Gas said, “ATF prices in India were deregulated in 2001 and are revised on monthly basis based on a formula of international benchmarks. Due to the closure of Strait of Hormuz and extraordinary situation in global energy markets, price of ATF for domestic markets was expected to increase by more than 100% on 1 April.” It added, “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 Ministry of Civil Aviation, have passed only a partial and staggered increase of 25% (only Rs.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.” Will flights get costly? The sharp rise in prices is expected to further raise the flight fares, which have already suffered as airlines have to take longer routes for Western destinations due to airspace closure in the Gulf region. Fuel makes up about 40 per cent of an airline’s operating cost. Meanwhile, prices of commercial LPG were hiked by Rs 195.50 on Wednesday (Apr 1). A 19-kg commercial LPG will now cost Rs 2,078.50 in Delhi, according to state-owned oil companies. Why are global fuel prices surging? Since the war broke out in West Asia after the US and Israel launched strikes on Iran on February 28, hostilities have continued to rise for a month now. Iran responded by retaliating across the Gulf, striking US and Israeli targets. Tehran has also blocked the strategic Strait of Hormuz, which is vital for global oil supplies. The Strait of Hormuz is the only maritime outlet for ports located in the Persian Gulf. Its blockage has significantly affected global energy supply, triggering a sharp rise in oil prices. Disclaimer: WION takes utmost care to accurately and responsibly report ongoing conflicts in West Asia involving Israel, Iran, the US, Gulf nations and non-state actors like Hezbollah, Hamas, Houthis, Islamic State, and others. Claims and counterclaims, disinformation and misinformation are being made online and offline. Given this context, WION cannot independently verify the authenticity of all statements, social media posts, photos and videos.

India’s jet fuel hit a record Rs 2.07 lakh/kl after a 114% surge, driven by the West Asia war. With fuel accounting for about 40% of airline costs, airfares are likely to rise further.

Flights to get costly in India? Jet fuel prices breach Rs 2 lakh per kl mark for first time

Domestic air travel is set to become more expensive across India starting March 23, after the government lifted fare caps, allowing airlines to price tickets freely in line with market conditions and rising costs. The move by the&nbsp;Ministry of Civil Aviation&nbsp;marks a return to full deregulation, ending temporary price bands that were introduced to stabilise fares during operational disruptions. With these limits gone, airlines are now expected to gradually increase ticket prices, particularly on high-demand routes.&nbsp;Industry estimates suggest that passengers could see fare hikes ranging from ₹200 to ₹1,500 per ticket, depending on the airline, route and booking window. Sources from IndiGo airline say that it is expected to lead the trend, with fares likely rising between ₹300 and ₹1,200. The airline has already introduced fuel surcharges, and prices on busy metro routes like Delhi–Mumbai and Mumbai–Bengaluru could see sharper increases of up to ₹1,500, especially during peak hours.&nbsp;Also read: <a href="https://www.wionews.com/india-news/india-s-free-seat-selection-plan-may-backfire-airlines-warn-passengers-may-still-end-up-paying-more-here-s-how-1774074627634">India's free seat selection plan can backfire! Airlines warn passengers may end up paying more</a>&nbsp;Full-service carrier&nbsp;Air India&nbsp;is also expected to raise fares in the ₹400 to ₹1,500 range. While economy class tickets may see moderate increases, last-minute bookings and business travel segments could witness steeper spikes due to higher demand and premium positioning. Among low-cost carriers,&nbsp;Air India Express&nbsp;is likely to keep hikes relatively modest, in the range of ₹300 to ₹900, at least initially. Similarly,&nbsp;SpiceJet&nbsp;may limit fare increases to ₹200–₹800.&nbsp;Newer entrant&nbsp;Akasa Air&nbsp;is expected to follow a balanced approach, with estimated fare hikes between ₹300 and ₹1,000, aligning with broader market trends while maintaining its growth strategy. Route-wise, short-haul flights under an hour may see smaller increases of ₹200 to ₹500, while metro routes of one to two hours could witness hikes between ₹500 and ₹1,200. However, the biggest impact is likely on last-minute bookings, where fares could surge by ₹1,000 to ₹2,500, particularly during weekends and holiday travel periods.&nbsp;The fare hikes are largely driven by rising aviation turbine fuel (ATF) costs, which account for a significant portion of airline expenses, along with ongoing geopolitical tensions impacting global oil prices. While the government has cautioned airlines against excessive pricing, fares are now expected to fluctuate more sharply based on demand, marking a shift towards a fully market-driven pricing regime for domestic air travel.

India lifts domestic airfare caps today, March 23, 2026. Airlines regain pricing freedom as West Asia war costs push ticket prices up by an estimated Rs1,500.

Domestic air travel is set to become more expensive across India starting March 23, after the government lifted fare caps, allowing airlines to price tickets freely in line with market conditions and rising costs. The move by the Ministry of Civil Aviation marks a return to full deregulation, ending temporary price bands that were introduced to stabilise fares during operational disruptions. With these limits gone, airlines are now expected to gradually increase ticket prices, particularly on high-demand routes. Industry estimates suggest that passengers could see fare hikes ranging from ₹200 to ₹1,500 per ticket, depending on the airline, route and booking window. Sources from IndiGo airline say that it is expected to lead the trend, with fares likely rising between ₹300 and ₹1,200. The airline has already introduced fuel surcharges, and prices on busy metro routes like Delhi–Mumbai and Mumbai–Bengaluru could see sharper increases of up to ₹1,500, especially during peak hours. Also read: India's free seat selection plan can backfire! Airlines warn passengers may end up paying more Full-service carrier Air India is also expected to raise fares in the ₹400 to ₹1,500 range. While economy class tickets may see moderate increases, last-minute bookings and business travel segments could witness steeper spikes due to higher demand and premium positioning. Among low-cost carriers, Air India Express is likely to keep hikes relatively modest, in the range of ₹300 to ₹900, at least initially. Similarly, SpiceJet may limit fare increases to ₹200–₹800. Newer entrant Akasa Air is expected to follow a balanced approach, with estimated fare hikes between ₹300 and ₹1,000, aligning with broader market trends while maintaining its growth strategy. Route-wise, short-haul flights under an hour may see smaller increases of ₹200 to ₹500, while metro routes of one to two hours could witness hikes between ₹500 and ₹1,200. However, the biggest impact is likely on last-minute bookings, where fares could surge by ₹1,000 to ₹2,500, particularly during weekends and holiday travel periods. The fare hikes are largely driven by rising aviation turbine fuel (ATF) costs, which account for a significant portion of airline expenses, along with ongoing geopolitical tensions impacting global oil prices. While the government has cautioned airlines against excessive pricing, fares are now expected to fluctuate more sharply based on demand, marking a shift towards a fully market-driven pricing regime for domestic air travel.

India lifts domestic airfare caps today, March 23, 2026. Airlines regain pricing freedom as West Asia war costs push ticket prices up by an estimated Rs1,500.

Up to Rs1,500 flight ticket hike likely as airlines regain pricing freedom

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Flights to get costly in India? Jet fuel prices breach Rs 2 lakh per kl mark for first time

Up to Rs1,500 hike likely as airlines regain pricing freedom