With ATF prices in India—deregulated since 2001 and revised monthly based on international benchmarks, facing extraordinary pressure due to global energy disruptions and the closure of the Strait of Hormuz, a steep increase of over 100% was anticipated from 1 April.
In this challenging context, the decision by PSU Oil Marketing Companies, under the Ministry of Petroleum in consultation with the Ministry of Civil Aviation, to implement only a partial and staggered increase of 25% (Rs.15/litre) for domestic airlines is both pragmatic and forward-looking, while ensuring that foreign routes bear the full market-aligned price.
Grateful to Hon’ble Prime Minister @narendramodi ji and the Hon’ble Petroleum Minister Shri @HardeepSPuri ji for this timely and considerate intervention on ATF pricing.
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. It will also benefit the broader economy by ensuring the smooth movement of cargo and maintaining vital air connectivity for trade and logistics.
@Pib_MoCA@PetroleumMin
ATF prices in India were deregulated in 2001 and are revised on monthly basis based on a formula of international benchmarks. Due to the closure of Strait of Hormuz and extraordinary situation in global energy markets, price of ATF for domestic markets was expected to increase by more than 100% on 1 April.
In order to insulate the domestic travel costs from the substantial increase in international prices, PSU Oil Marketing Companies of the Ministry of Petroleum, in consultation with Ministry of Civil Aviation, have passed only a partial and staggered increase of 25% (only Rs.15/litre) to the airlines. Foreign routes will pay for the full increase in ATF prices consistent with what they pay in other parts of the world.
@HardeepSPuri@MoCA_GoI@Secretary_MoPNG@IndianOilcl@BPCLimited@HPCL
Yesterday, 523000 domestic customers on domestic network and today should touch new high of customers. Overall all airlines are registering over 90% of PLF which reflects the much needed capacity in market.
🚨Navi Mumbai Airport🚨
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Back to business with all airports now to operations, aviation in India is again bound for greater growth after few days of uncertainty. Action was much needed but now back to business!
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While domestic traffic is getting to new heights with over 535000 daily customers, why is Air India Express struggling to push PLF at par with LCCs or even Air India? We are not saying that 87.7% is not good though.
Aviation is witnessing all time high pax, and with capacity induction in next few months, we should see overall customers over 6lakhs soon. Great time for the entire aviation ecosystem.
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