Commercial LPG prices hiked 10%, jet fuel rates up 9% for domestic airlines
State-run oil marketing firms hiked the price of commercial liquified petroleum gas (LPG) cylinders by more than 10% in major metro cities on Wednesday (April 1, 2026), while the price of aviation turbine fuel (ATF) was more than doubled for international air travel and chartered flights. However, there was some respite for travellers flying within the country as ATF rates for scheduled domestic carriers were hiked by less than 9%.
IndiGo, which currently holds two-thirds of the domestic aviation market, responded by hiking its fuel surcharge up to ₹950 for domestic flights and ₹10,000 for international flights.
The union government defended the hikes, noting that its oil marketing companies (OMCs) are bearing the brunt of the spike in global oil prices, absorbing losses of ₹380 per cylinder on average.
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No change in domestic LPG rates
The Indian Oil Corporation set the new price of a 19 kg commercial cylinder in Delhi at ₹2,078.5, a hike of ₹195.5 from the ₹1,883 price set on March 7. Similarly, Mumbai woke up to a ₹196 hike on each commercial cylinder, with a ₹203 price increase seen in Chennai, and ₹218 in Kolkata. There has been no change to the prices of LPG cylinders meant for household use.
For domestic flights, the price of ATF in Delhi was increased by about 8.6% to ₹1,04,927 per kilolitre (Kl), with a similar 8.6% in Mumbai.
For international flights by Indian airlines as well as chartered flights, the price of ATF was more than doubled to a record ₹2.07 lakh per kilolitre.
‘Partial increase’
The Ministry of Petroleum and Natural Gas defended the hike in ATF prices, saying that it has passed on only a partial increase to the airlines. It suggested that its OMCs are taking the hit as global crude rates surge due to the U.S.-Israeli war against Iran.
“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 ₹15/litre) to the airlines,” the Ministry said in a post on social media.
In other words, the government says it has passed on only a quarter of the actual impact if ATF prices were aligned with current international rates.
IndiGo raises surcharges
IndiGo responded to the hike by revising its fuel surcharges. Domestic surcharges have been rationalised, and now range between ₹275 and ₹950 per flight, depending on the distance being flown, effectively reducing the burden on shorter routes.
International fuel charges have seen a much steeper increase. Previously ranging from ₹900 to ₹2,300 per sector depending on region, the revised charges now go up to as high as ₹10,000 for long-haul routes such as India-Europe, reflecting the sharp rise in ATF prices for international operations.
Also read: West Asia war updates on April 1, 2026
‘Staggered increase’
The ATF rate for scheduled domestic carriers has been increased by ₹21 per litre, whilst those for non-scheduled and international airlines are up more than ₹110 per litre, Ministry Joint Secretary Sujata Sharma told journalists. She clarified that these are retail prices, not the base prices of the fuel.
Though the government referred to a “staggered increase” in ATF rates, Ms. Sharma could not offer any clarity on the timing of the next such hike. “When will it happen next, I cannot say now. The government will take a decision at the appropriate time,” she said.
Commercial LPG rates, on the other hand, are deregulated, market-determined, and revised monthly. “Their consumption is less than 10% of the total LPG consumed in the country,” the Union government said. The latest hike in commercial cylinder prices follows a 44% spike in benchmark Saudi Contract prices between March and April, as 20% to 30% of global LPG is stranded in the Strait of Hormuz.
Published – April 01, 2026 08:18 am IST
