India increases jet fuel, commercial LPG prices

India's oil ministry announced on Wednesday, April 1, that prices for jet fuel will increase due to rising energy costs from the ongoing war in the Middle East. However, the ministry managed to limit the impact on airlines, preventing an expected 100 percent increase. Aviation turbine fuel (ATF) is a major expense for airlines, and ongoing price hikes could lead to higher ticket prices for passengers. The state-owned Indian Oil Corporation reported an 8.5 percent rise in ATF prices in the capital city of Delhi, with similar increases in other major urban areas. The Ministry of Petroleum stated that, due to the situation in the Strait of Hormuz—a key oil shipping route affected by the conflict—ATF prices were projected to rise significantly on April 1. Nevertheless, the ministry decided to implement only a partial and staggered increase of 25 percent for domestic airlines to help manage travel costs amid soaring international prices. For international flights, airlines will face the full increase in ATF prices, in line with global rates. Additionally, the prices for commercial liquefied petroleum gas (LPG) have also gone up. India ranks as the fourth-largest purchaser of liquefied natural gas (LNG) and the second-largest buyer of LPG, which is primarily imported from the Middle East and used for cooking.