Aviation turbine fuel (ATF) prices in India reached ₹207,341 per kilolitre in Delhi on April 1, 2026, more than double the pre-crisis level of approximately ₹94,000 per kilolitre after Iran blocked the Strait of Hormuz on February 28, cutting off roughly 25% of global seaborne jet fuel supply, per energy consultancy Kpler. IndiGo, which controls over 60% of the domestic market, introduced distance-based fuel surcharges of up to ₹950 per domestic sector and ₹10,000 on European routes for all bookings from April 2. Air India followed on April 8. The Ministry of Petroleum and Natural Gas and the Ministry of Civil Aviation jointly capped the domestic ATF pass-through at 25%, limiting the regulated increase for scheduled carriers to 8.5%, but charter and non-scheduled operators face the full unregulated 114.5% jump.
WHAT CLOSED THE STRAIT AND WHY INDIA IS EXPOSED
The conflict began February 28, 2026, when the United States and Israel launched coordinated airstrikes on Iran under Operation Epic Fury, killing Supreme Leader Ali Khamenei. Iran’s IRGC closed the Strait of Hormuz to US and Israeli-allied vessels in retaliation. As of April 24, the closure remains in force. Iran briefly signalled a partial reopening on April 18 but reversed it within 24 hours after the US maintained its naval blockade on Iranian ports. Over 2,000 ships and 20,000 mariners remain stranded in the Persian Gulf.
The closure matters structurally for India. Roughly 20% of global oil and 25–30% of seaborne jet fuel transit this single waterway, per Kpler and Tourism Economics analyst Stephen Rooney. India imports a large share of its crude from Gulf producers, and Asian refineries, including South Korea, the world’s largest jet fuel exporter, depend on the same Gulf crude to produce the fuel Indian carriers burn. South Korea has since begun limiting jet fuel exports, per CNN, further tightening options for Indian carriers. Fuel already accounts for 35–45% of Indian airline operating costs in normal conditions, per Civil Aviation Minister Ram Mohan Naidu.
WHAT AIRLINES ARE CHARGING PASSENGERS
IndiGo’s five-tier domestic surcharge structure, effective April 2:
| Route Distance | Surcharge Per Sector |
|---|---|
| Up to 500 km | ₹275 |
| 501–1,000 km | ₹400 |
| 1,001–1,500 km | ₹600 |
| 1,501–2,000 km | ₹800 |
| Above 2,000 km | ₹950 |
On international routes where no government cap applies, IndiGo charges ₹3,000 per sector for near-Gulf destinations like Dubai and Doha, ₹5,000 for Jeddah and Riyadh, and ₹10,000 for the UK and Europe. Air India’s domestic grid runs ₹299 to ₹899. The airline has publicly stated its surcharges “do not compensate for the increase in jet fuel prices,” signalling further revisions at the next IOC price review on May 1. Akasa Air charges ₹199–₹1,300 per sector, according to Travel and Tour World.
Airline Comparison — April 2026
| Airline | Domestic (Under 500 km) | Domestic (Above 2,000 km) | Europe |
|---|---|---|---|
| IndiGo | ₹275 | ₹950 | ₹10,000 |
| Air India | ₹299 | ₹899 | Unconfirmed ceiling |
| Akasa Air | ₹199 | ₹1,300 | Not disclosed |
THE GOVERNMENT CAP AND WHAT HAPPENS MAY 1
The 25% pass-through cap explains why domestic surcharges look modest against a 114.5% underlying price shock. The full ₹1.1 lakh per kiloliter increase applies only to unregulated charter and non-scheduled operators. State-level VAT on ATF, ranging from 18 to 29% across Delhi and Maharashtra, remains unchanged; no state has announced a cut as of April 24.
The next IOC revision date is May 1. If ATF prices rise again, the government must choose: absorb the gap through a subsidy mechanism or lift the cap and pass costs to passengers. Maintaining the subsidy sets a precedent difficult to unwind while the strait stays closed; lifting the cap risks pushing short-haul fares past the threshold where rail becomes viable, particularly on routes under 1,000 km.
TIMELINE AND TRAVELLER IMPACT
Kpler analyst Matt Smith estimated normalisation would take “until at least July, and even that may be optimistic,” per CNN. That estimate predates Iran’s April 18 reversal; the trajectory has not been linear. IATA Director General Willie Walsh has separately warned that even a permanent peace agreement would take several months to normalise fuel supply chains, per TimeTrex.
A Delhi–Mumbai return now carries an additional ₹1,200 in fuel surcharges (₹600 each way on a ~1,400 km route) on top of a pre-crisis base fare of ₹8,000–₹10,000, per MakeMyTrip Q1 2026 domestic fare data. A Delhi–London return adds ₹20,000 in surcharges alone. Bookings made before April 2 are unaffected. Passengers facing cancellations or significant rescheduling retain full refund rights under DGCA regulations regardless of fare type.
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FREQUENTLY ASKED QUESTIONS
Which airlines have introduced fuel surcharges in India in 2026?
IndiGo (from April 2), Air India (from April 8), and Akasa Air have all introduced surcharges. IndiGo’s domestic range is ₹275–₹950; Air India’s is ₹299–₹899; Akasa Air’s is ₹199–₹1,300 per sector. SpiceJet’s position has not been publicly confirmed as of April 24.
Are existing bookings affected?
No. Both IndiGo and Air India have confirmed surcharges apply only to bookings made from April 2, 2026, onwards. Travel date does not matter; booking date does.
How long will high ATF prices last?
Kpler puts the floor at July 2026, but that predates Iran’s April 18 re-closure of the strait. Partial openings have collapsed multiple times since late February, making any timeline speculative. IATA warns recovery will take months even after a permanent resolution. The next key domestic date is May 1, when IOC revises ATF prices, a further increase will force a government decision on the cap.
