The Union government on Wednesday limited the increase in the price of aviation turbine fuel for domestic airlines to 25%.

This came after an increase in the prices of jet fuel notified earlier in the day amid disruption of energy supplies caused by the conflict in West Asia.

The aviation turbine fuel price list published by Indian Oil, the country’s largest public sector oil marketing company, initially showed an increase of about 115% on Wednesday for some categories of flights, CNBC-TV18 reported.

Shortly after the initial reporting about the spike in the rates, the petroleum ministry said that while the prices of aviation turbine fuel for the domestic markets had been expected to increase by more than 100%, amid the “extraordinary situation” in the global energy market, “only a partial and staggered increase of 25% (only Rs 15/litre) to the airlines” had been implemented.

The cap will insulate the domestic travel costs from the substantial increase in international prices, the ministry said. The decision was taken by state-owned oil marketing companies in consultation with the Ministry of Civil Aviation, it added.

“Foreign routes will pay for the full increase in ATF prices consistent with what they pay in other parts of the world,” the statement added.

State-owned Indian Oil, Bharat Petroleum and Hindustan Petroleum revise the prices...

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