New Delhi (Gurpreet Singh): Fuel costs in India have spiked sharply as escalating tensions in West Asia continue to disrupt global energy markets, pushing aviation turbine fuel (ATF) prices to record levels and increasing the burden on key sectors.
According to state-run oil companies, jet fuel prices have more than doubled, crossing the ₹2 lakh per kilolitre mark in Delhi for the first time. The latest revision represents an increase of over 114 per cent, making it the steepest surge in recent years. The previous high was recorded in 2022 during a period of global crude volatility.
This marks the second consecutive hike in ATF rates, following a smaller increase in March. Industry analysts warn that the rise could significantly impact airlines, where fuel expenses constitute nearly 40 per cent of operational costs. The situation has been further aggravated by longer flight paths due to restricted airspace in conflict-hit regions.
At the same time, commercial LPG prices have also gone up substantially. The cost of a 19-kg cylinder—commonly used by hotels and restaurants—has increased by ₹195.50, adding pressure on the hospitality industry already grappling with rising input costs.
However, there is some relief for households, as domestic cooking gas prices have remained unchanged for now.
Fuel pricing in India is revised monthly by public sector companies such as Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum, based on international crude rates and currency movements.
Global oil prices have surged significantly in recent weeks due to supply disruptions linked to the ongoing conflict, raising concerns about inflationary pressures across multiple sectors.
While petrol and diesel prices have remained stable since last year’s reduction, the sharp rise in aviation and commercial fuel costs is expected to have a cascading effect, potentially leading to higher airfares and increased service charges in the coming weeks.
