ATF Price Surge Looms: Will Airfares Skyrocket For Indian Flyers From April?

Air travel in India could soon get significantly more expensive. Despite aviation turbine fuel (ATF) prices holding steady through March, global jet fuel rates have surged nearly 96% amid geopolitical tensions, particularly around Iran. With domestic prices expected to catch up from April 1, airlines may be forced to pass on higher costs to passengers. Fuel accounts for nearly 40% of airline operating expenses, and rising crack spreads—now far above historical averages—are adding further pressure. While the Centre has cut some taxes, it is urging states to reduce VAT on ATF, which remains as high as 29% in some regions. There are also ongoing discussions between the government, airlines, and oil companies to cap refining margins. But if global trends persist, ATF prices in Delhi could hit ₹2 lakh per kilolitre—raising serious concerns for both airlines and travellers this summer.