War Claims New Victims, RI's Neighbour Begins to Raise Aviation Fuel and LPG Prices
Jakarta, CNBC Indonesia - Aviation fuel, or avtur, prices in India have officially risen amid the turmoil of the energy crisis caused by the war in the Middle East. However, the government states it has restrained a larger increase to prevent air travel costs from surging dramatically.
Aviation turbine fuel (ATF) is a major cost component for airlines. Sustained increases in ATF prices could directly lead to higher ticket fares for passengers.
The state-owned refinery company, Indian Oil Corporation, stated that ATF prices have risen by 8.5% in the capital Delhi, with similar increases in other major cities.
In its official statement, India’s Ministry of Petroleum affirmed that the extraordinary conditions in the global energy market have triggered this surge.
“Due to the closure of the Strait of Hormuz and the extraordinary situation in the global energy market, ATF prices for the domestic market are estimated to increase by more than 100 percent on 1 April,” the ministry said on Wednesday (1/4/2026), as reported by AFP.
The Strait of Hormuz is a vital shipping route for global oil and gas, which is practically paralysed due to the war in the Middle East. This disruption has driven a spike in global energy prices.
However, the Indian government stated it is only applying a limited increase for domestic airlines. “We are only passing on a partial and gradual increase of 25% to airlines to protect domestic travel costs from major international price hikes,” the ministry said.
In contrast, international routes do not receive the same protection. “Foreign travel routes will pay the full ATF price increase as they do in other parts of the world,” it added.
Commercial LPG Prices Rise
The impact of the energy price increase has also spread to other sectors. Liquefied petroleum gas (LPG) prices for commercial needs have also risen.
India is the world’s fourth-largest buyer of liquefied natural gas (LNG) and the second-largest buyer of LPG, much of which is supplied from the Middle East region. This dependence makes the country sensitive to global energy supply fluctuations.
For commercial LPG, the price of a 19-kilogram gas cylinder has risen by around 200 rupees or Rp36,000 on average in four major cities: Delhi, Kolkata, Mumbai, and Chennai.
Nevertheless, the government has assured that household LPG prices remain unchanged in this revision, thereby suppressing the direct burden on domestic consumers.