State-owned petroleum companies on Wednesday (April 1, 2026) hiked the prices of commercial liquefied petroleum gas (LPG) cylinders by more than 10% in major metro cities, while the price of aviation turbine fuel (ATF) more than doubled for international and charter flights. However, there was some respite for travelers flying within the country as ATF rates for scheduled domestic carriers were increased by less than 9%.
IndiGo, which currently holds two-thirds of the domestic aviation market, responded by increasing the fuel surcharge to up to ₹950 on domestic flights and ₹10,000 on international flights.
The union government defended the hike, noting that its oil marketing companies (OMCs) were bearing the brunt of the spike in global oil prices, absorbing losses averaging ₹380 per cylinder.
Also Read: LPG Crisis LIVE Update 1st April 2026
Domestic LPG rates are unchanged
Indian Oil Corporation has set the new price of a 19 kg commercial cylinder in Delhi at ₹ 2,078.5, an increase of ₹ 195.5 from the price of ₹ 1,883 set on March 7. Similarly, Mumbai woke up to an increase of ₹ 196 for every ₹ 2 commercial bottle that was observed in Chen 20, with a price increase of ₹ 20. ₹218 in Kolkata. The prices of LPG cylinders intended for household use have not changed.
For domestic flights, ATF in Delhi rose about 8.6% to ₹1,04,927 per kiloliter (Kl), with a similar 8.6% in Mumbai.
The price of ATF has more than doubled to a record Rs 2.07 lakh per kiloliter on both Indian Airlines international and charter flights.
‘partial increase’
The Ministry of Petroleum and Natural Gas defended the ATF hike by saying that it only passed on a partial hike to the airlines. It indicated that its OMCs are taking the hit as global oil rates soar in the wake of the US-Israeli war against Iran.
“To insulate domestic travel costs from the substantial increase in international prices, PSU Oil Marketing Companies of the Ministry of Petroleum, in consultation with the Ministry of Civil Aviation, have passed on only a partial and incremental increase of 25% (₹15/litre only) to the airlines,” the ministry said in a social media post.
In other words, the government says it has only passed on a quarter of the actual impact if ATF prices were aligned with current international rates.
IndiGo increases surcharges
IndiGo responded to the increase by revising its fuel surcharges. Domestic surcharges have been rationalized and now range between ₹275 and ₹950 per flight depending on the distance flown, effectively reducing the burden on shorter routes.
International fuel charges have seen a much steeper increase. Earlier, the revised charges ranged from ₹900 to ₹2,300 per sector depending on the region and now go up to ₹10,000 for long-haul routes such as India-Europe, reflecting the sharp rise in ATF prices for international operations.
Also Read: West Asia War Update 1 April 2026
“Gradual Increase”
The ATF rate for scheduled domestic carriers has increased by ₹21 per litre, while rates for non-scheduled and international airlines have increased by more than ₹110 per litre, the ministry’s joint secretary Sujata Sharma told reporters. She clarified that these are retail prices, not basic fuel prices.
Although the government referred to an “unexpected hike” in ATF rates, Ms Sharma failed to provide any clarity on the timing of another such hike. “When that will happen next, I cannot say now. The government will decide at the appropriate time,” she said.
Commercial LPG rates, on the other hand, are deregulated, determined by the market and revised monthly. “Their consumption is less than 10% of the total LPG consumption in the country,” the Union government said. The latest increase in commercial cylinder prices follows a 44% rise in benchmark Saudi contract prices between March and April as 20-30% of global LPG is stuck in the Strait of Hormuz.
Published – 1 Apr 2026 08:18 IST
