New Delhi, April 1: The government on Wednesday said that domestic airfares are unlikely to see a sharp rise as it has cushioned the impact of a steep surge in aviation turbine fuel (ATF) prices by allowing only a partial increase for domestic airlines. According to the Ministry of Petroleum and Natural Gas (MoPNG), ATF prices in India — deregulated since 2001 — are revised monthly based on international benchmarks.
Given the current geopolitical situation, ATF prices for domestic markets were expected to rise by more than 100 per cent from April 1. However, in a bid to shield domestic air travel costs from a steep spike, public sector oil marketing companies (OMCs), in consultation with the Ministry of Civil Aviation, have implemented only a partial and staggered increase. Domestic airlines will face a limited hike of around 25 per cent, translating to approximately Rs 15 per litre, instead of the full pass-through of global price increases, the government said. In contrast, airlines operating on international routes will bear the full increase in ATF prices, in line with global market-linked pricing. Union Civil Aviation Minister Ram Mohan Naidu said the calibrated approach would help protect passengers and the aviation sector.