Credited from: REUTERS
The Indian government clarified that it has implemented a 25% increase in aviation turbine fuel (ATF) prices, predominantly affecting domestic airlines. The adjustment was made to cushion against soaring international prices due to conflicts in the Middle East, including the ongoing U.S.-Israeli tensions with Iran that have affected major oil supply routes, particularly the Strait of Hormuz. This partial increase helps to prevent drastic fare hikes for passengers, maintaining prices at ₹104,927 per kiloliter for domestic flights, according to Indiatimes, Reuters, and AA.
Notably, prices for foreign routes will align with the full international increases, with domestic airlines experiencing an **8.5%** adjustment, as noted by the Ministry of Civil Aviation. This strategic decision to implement only a partial price hike aims to mitigate financial strain on airlines and protect domestic travelers from the sharp upsurges expected in global energy costs, according to Indiatimes and Reuters.
In parallel, commercial liquefied petroleum gas (LPG) prices surged due to a 44% spike in the Saudi benchmark prices, with 10.4% increases implemented to commercial LPG cylinders. This rise reflects challenges in supply chains, as around 20-30% of global LPG supplies are impacted by the Strait of Hormuz closure, further complicating India's energy landscape amid its highest gas crisis in decades, according to Reuters and AA.