LPG and fuel crisis : Jet fuel prices more than doubled to ₹2.07 lakh/kl; commercial LPG up ₹195.50

This is the first time ever that aviation turbine fuel prices have crossed the ₹2 lakh per kilometer mark; Domestic cooking gas LPG rates, which were last hiked by ₹60 per 14.2 kg cylinder on March 7, remain unchanged.

The price of aviation turbine fuel (ATF), or jet fuel, was more than doubled to a record ₹2.07 lakh per kilolitre, while the government has stepped in to protect domestic air passengers with a much smaller hike on Wednesday (April 1, 2026). The commercial LPG rates were raised by ₹195.50 per cylinder, mirroring the surge in global oil prices linked to the widening West Asia conflict.

West Asia war updates on April 1, 2026

This is the first time ever that ATF prices have crossed the ₹2 lakh per kl mark. The previous peak was in 2022, when rates were hiked by ₹1.1 lakh per KL after oil prices surged after Russia invaded Ukraine.

The rates of commercial LPG — the one that is used by hotels and restaurants — were hiked ₹195.50 per 19-kg cylinder. Domestic cooking gas LPG rates, which were last hitched by ₹60 per 14.2-kg cylinder on March 7, remain unchanged.

State-owned Indian Oil Corp, Bharat Petroleum, and Hindustan Petroleum revise ATF and LPG prices on the first day of every month based on international benchmarks and the exchange rate.

Greenpeace accuses oil companies of reaping Mideast ‘war profits’

A study commissioned by Greenpeace said today that oil companies have been making more than 80 million euros a day in “war profits” in the European Union since the beginning of the war.

“If this level persists, the oil companies can expect additional operating profits of approximately 2.5 billion euros ($2.9 billion) for the month of March alone,” the study said.

The study examined the gap between the price of crude oil and the price of fuel at the pump between January and February 2026, and the first three weeks of the war in March.

“The report shows that the rise in prices at the pump is far greater than that of underlying crude oil prices,” Greenpeace said in a statement.

Jet fuel prices more than doubled to ₹2.07 lakh/kl, Commercial LPG up ₹195.50
Jet fuel prices surge to ₹2.07 lakh/kl, marking a record high; Commercial LPG rates also increase amidst global oil surge.

The jump in jet fuel prices due to the US-Israel war on Iran – had it been implemented in full – would have been a heavy burden for local airlines, which are already grappling with thin margins.

New Delhi:

The government on Wednesday protected domestic airlines from a sharp increase in jet fuel prices amid global energy supply constraints due to the ongoing war in the Middle East.

On Wednesday morning the state-owned Indian Oil Corp doubled aviation turbine fuel (ATF) prices in Delhi to Rs 2.07 lakh a kilolitre for April. Hours later, it dropped to Rs 1.04 lakh/kl.

The government said it would only permit a partial increase after it emerged that prices for the domestic market are expected to increase by over 100 per cent from April 1, 2026. This, the government said, is to shield domestic airfares from step hikes.

Therefore, public sector OMCs, or oil marketing companies, in consultation with the Ministry of Civil Aviation, have now implemented only a partial and staggered increase in ticket prices. Domestic airlines will face a limited hike – around 25 percent cent or approximately Rs 15 per kl – instead of the full pass-through of global price increases, the government said.

However, airlines operating international routes will bear the full increase, in line with global market-related pricing.

Aviation Minister Ram Mohan Naidu said this approach will help protect travelers and the aviation sector.

“This calibrated approach will help protect passengers from sharp fare increases, ease the burden on domestic airlines, and support the continued stability of the aviation sector at this crucial juncture,” he said. He also said this will benefit the larger economic picture by ensuring smooth cargo movement and maintaining critical air connectivity for trade and logistics.

The US-Israel war on Iran, which began Feb 28 and rapidly escalated to strikes on energy infrastructure and a blockade on tanker traffic through the Strait of Hormuz, has thrown the global energy market into turmoil. The near-total closure of the key waterway – which ships a fifth of the world’s oil and gas supply – choked exports and prices surged on widening disturbance.

The jump in jet fuel – had it been implemented in full – would have been a heavy burden for local airlines, which are already grappling with thin margins.

Other airlines in the region have been similarly hit.

Carriers from Vietnam to New Zealand have had to cancel flights as costs soared, while China – the world’s largest oil importer – has curtailed fuel exports to secure domestic supply.

IndiGo share price:

Shares of aviation companies Interglobe Aviation (IndiGo) and Spice Jet were in focus on Wednesday, April 1, as the price of aviation turbine fuel (ATF), or jet fuel, more than doubled to a record ₹2.07 lakh per kilometer on Wednesday; however, domestic airlines will not have to pay the steep increase, as a mechanism is in works to shield them, PTI reported.

The fuel price has been increased, given the surge in global oil prices linked to the widening West Asia conflict.

The ATF price in Delhi was hiked by ₹110,703.08 per kiloliter, or 114.5%, to Rs 207,341.22 per kl, according to state-owned fuel retailers.

ATF, being a fully deregulated product, is priced at prevailing benchmark international prices. This is as per a written understanding with the airlines.

So the new rates will apply for any international airline refueling in India from Wednesday, the PTI report said, citing industry sources.

Domestic airlines will, however, not have to pay the steep rates, as a mechanism is in works to not pass on the entire burden to them, they said.

“It wasn’t immediately known how much domestic airlines will have to pay and how much will be absorbed in some other form. No formal announcement of the mechanism has been made so far,” the report said.

This is the first time ever that the ATF price has crossed the ₹2 lakh per kl. mark. The previous peak was in 2022 when rates were hiked to ₹1.1 lakh per KL after oil prices surged after Russia invaded Ukraine.

This is the second monthly increase in rates. Prices on March 1 were hiked by 5.7% (₹5,244.75 per kla).

The rise in fuel prices is expected to further strain airlines, which are already consuming more fuel due to longer flight routes to Western destinations following airspace closings amid the conflict. With fuel accounting for nearly 40% of an airline’s operating costs, the combined impact of higher prices and extended flying times is likely to significantly pressure margins.

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