Jet Fuel Crosses ₹2 Lakh Mark, LPG Prices Also Rise

By Kotak News Desk
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01 Apr 2026 at 11:38 AM IST
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Market News
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4 minutes read

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Summary

ATF rates have gone beyond ₹2 lakh per kilolitre for the first time, mainly because of the rising global crude oil prices that were influenced by the tensions in West Asia. Besides this, commercial LPG prices have gone up too, which has resulted in more expenses for the airlines and hospitality sectors.

Aviation turbine fuel (ATF) prices rose to a record on 1 April 2026, reaching ₹2.07 lakh per kilolitre for the first time.

In Delhi, the rate rose to ₹2,07,341.22 per kl from ₹96,638.14. Chennai reported ₹2,14,597.66, Kolkata ₹2,05,953.33, and Mumbai ₹1,94,968.67 per kl.

Rates for commercial liquefied petroleum gas (LPG) used by hotels and restaurants were also increased by ₹195.50 per 19-kg cylinder. Household LPG prices were left unchanged after the revision earlier in March.

What Is The Reason Behind This Hike?

The surge is mainly due to the increase in the price of crude oil worldwide as tensions in West Asia are causing supply chain disruptions and uncertainties in the fuel market.

ATF prices have hit above ₹2 lakh per kl for the first time in history. The last highest level was seen in 2022 when the prices went up by ₹1.1 lakh per kl on the back of rising oil rates after the Russian invasion of Ukraine.

On the first day of every month, state-owned Indian Oil Corporation, Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL) change the price of ATF and LPG in accordance with international price indices and the exchange rate.

Who Feels The Impact First?

Airlines are the most exposed, since fuel accounts for a large share of operating costs. A jump of this scale can quickly squeeze margins.

Carriers may look to raise fares, trim capacity on weaker routes, or tighten costs elsewhere.

Restaurants and hotels face a smaller but direct hit from higher commercial LPG prices. For outlets with thin margins, even a moderate increase in fuel costs can affect profitability.

Also Read - RBI Delay Of Revised Liquidity Framework Lifts BSE Shares By Nearly 7% In Early Trade

What Can Investors Expect Next?

Near-term pressure on airline earnings is likely if fuel stays elevated. Investors may watch for fare changes, load factors, and any cost controls that carriers put in place.

Stocks in the aviation space may move in line with crude prices and currency swings.

The price of oil cooling down worldwide or better supply circumstances might help to reduce some of the cost pressures.

If the tensions go on, it's highly likely that the fuel bills will keep on increasing, which will, therefore, put pressure on the margins.

Source:

The Hindu

The Economic Times

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