Global jet fuel prices have spiked by 86% up to the week ending March 13, but oil marketing companies (OMCs) have not completely reflected this increase in the March pricing cycle. Consequently, domestic aviation turbine fuel (ATF) prices have only slightly climbed from $778.85 per kilolitre in February to $816.9 per kilolitre in March.
“There will certainly be an effect on ATF prices,” stated Aviation Minister Ram Mohan Naidu, indicating that the impact is anticipated to become apparent from April 1.
The government is gathering feedback from airlines regarding the economic implications and will evaluate measures that can be implemented “in the interest of passengers.”
Also read: Planning a summer trip? Act quickly as the West Asia conflict raises fuel prices, limiting destinations
Echoing these concerns, the Air India CEO remarked that even though spot prices for jet fuel have significantly more than doubled, most of the repercussions will be evident next month.
He added that while airlines have introduced fuel surcharges, fare increases have a limit before demand begins to decline.
The CEO also noted that some international carriers have already reduced their flight schedules due to high fuel costs, and mentioned that Air India might need to adjust its operations based on changes in fuel prices, airfares, and passenger demand.
The Ministry of Civil Aviation announced on Saturday (March 21) the removal of the temporary cap on domestic airfares, with the new order taking effect from March 23, marking a shift back to market-driven pricing after several months of regulatory control.
The fare caps, which were implemented in early December 2025, were established during the peak of the IndiGo disruption, when widespread flight cancellations caused an unprecedented spike in ticket prices across various routes.
Also read: DGCA advises Indian carriers to avoid 11 high-risk airspaces in West Asia and the Gulf
