'Don't want burden to shift on passengers': MoCA pushes to remove fuel surcharges on domestic flights

The Ministry of Civil Aviation (MoCA) is actively engaging with Indian airline operators to discuss the rising fuel surcharges on domestic flights. MoCA is concerned about the recent increase in IndiGo's fuel surcharges, with indications that other airlines may soon follow suit, sources told India Today.

The government’s recent decision to implement a staggered increase in Aviation Turbine Fuel (ATF) prices for domestic routes was aimed at providing some relief to the aviation sector, which has been grappling with soaring fuel costs. However, MoCA is determined to ensure that this burden is not passed onto passengers.

IndiGo raises airfares

Earlier this week, India’s largest airline, IndiGo, raised airfares by introducing higher fuel charges due to the significant spike in ATF prices. The new fuel surcharges will apply to all new bookings starting from April 2, 2026, and will impact both domestic and international travellers.

The fuel charge for domestic flights now depends on the distance. Passengers flying on routes up to 500 km will face an additional charge of ₹275, while those on longer flights above 2,000 km will pay an additional ₹950 per sector. Charges for intermediate routes range from ₹400 to ₹800.

In response to the growing concerns surrounding rising fuel prices, MoCA is focusing on a multi-faceted strategy to minimize the impact on passengers. Sources have revealed that Civil Aviation Minister Ram Mohan Naidu is urging states to reduce Value Added Tax (VAT) on ATF, particularly in regions like Delhi, where VAT plays a significant role in the final cost of fuel.

Furthermore, MoCA is in discussions with the Petroleum Ministry to address the volatility in global ATF prices. The aim is to find ways to cushion the impact of price fluctuations while ensuring that airlines remain financially viable.

The government is working towards balancing two critical goals: keeping ticket prices stable by limiting the pass-through of higher fuel costs and providing financial support to airlines so they can continue operating without additional pressure. As ATF prices are expected to be revised on April 1, the coming days will reveal how much of the global fuel surge is passed on to the passengers in terms of ticket prices.

(With inputs from Amit Bharadwaj)