NEW DELHI: India on Wednesday (April 1) announced plans to raise the price of jet fuel amid a surge in global prices due to the US-Israeli strike on Iran, officials said.
Domestic fuel retailers have raised prices of aviation turbine fuel (ATF) to 104,927 Indian rupees (US$1,123.72) per kilolitre.
The federal government defended the hike, saying that the increase passed on to domestic airlines is only a "partial and staggered" adjustment, aimed at cushioning the impact of a global oil price surge.
In a statement, the Ministry of Petroleum and Natural Gas said that due to the closure of the Strait of Hormuz and the extraordinary situation in global energy markets, the price of ATF for domestic markets was expected to increase by more than 100 per cent on 1 April.
In order to insulate domestic travel costs from the substantial increase in international prices, only a partial and staggered increase of 25 per cent (only INR 15/litre) will be applied to domestic airlines, while foreign routes will pay the full increase in ATF prices, according to the statement.
India's aviation minister Kinjarapu Rammohan Naidu said this approach will help protect passengers and the aviation sector.
"This calibrated approach will help shield passengers from sharp fare increases, ease the burden on domestic airlines, and support the continued stability of the aviation sector at this crucial juncture," he said. "It will also benefit the broader economy by ensuring the smooth movement of cargo and maintaining vital air connectivity for trade and logistics."
The ongoing US-Israel attacks on Iran and its retaliation have triggered a shortage of liquefied petroleum gas in India because of the reduction of sea traffic through the key oil shipping route, the Strait of Hormuz.
The closure of the sea route has already sent global oil prices soaring. - Xinhua
