Commercial LPG prices rise 10%; government caps ATF hike on domestic flights at 25%

Price of commercial liquified petroleum gas (LPG) cylinders rose more than 10% in major metro cities while prices of aviation turbine fuel (ATF) has more than doubled for international air travel and chartered flights, while the government has stepped in to protect domestic air travellers with a much smaller hike**on Wednesday (April 1, 2026).

State-owned oil marketing company (OMC) IndianOil, notified that price of the 19 kg commercial cylinder rose by ₹195.5 per cylinder, from ₹1,883 per cylinder earlier (March 7) to ₹2,078.5 for each cylinder in Delhi.

Also read: LPG crisis LIVE updates April 1, 2026

Similarly, Mumbai woke up to a ₹196 hike on each commercial cylinder, Chennai ₹203 and Kolkata ₹218. There has been no change to prices of domestic LPG, that is, 14 kg cylinders.

Further, the price of aviation turbine fuel (ATF) in Delhi had increased about 8.6% from the earlier price notified (March 1) to ₹1,04,927 (about ₹1.05 lakh) for every kilolitre (Kl) at present. Price of ATF in Mumbai also rose a similar 8.6%.

The price of aviation turbine fuel (ATF) more than doubled to a record ₹2.07 lakh per kilolitre on Wednesday (April 1, 2026) for international flights by Indian airlines as well as chartered flights. The government though has stepped in to ensure only a 25% increase for domestic flights amounting to a ₹1,04,927 kilo litre from the previous ₹96,638.14 per kilo litre in Delhi, according to Indian Oil Corporation.

In a social media post, the Petroleum Ministry said, “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.”

It added that foreign routes will pay for the full increase in ATF prices.

For clarity, in line with the prevalent international price dynamics, the effective hike would have been higher than ₹60 per litre or ₹60,000 for every kilolitre. However, only ₹15 per litre, or ₹15,000 per kilolitre has been passed on to airlines.

Also read: West Asia war updates on April 1, 2026

IndiGo said it would be announcing its revised fuel charges shortly. Various Indian airlines had already imposed a fuel surcharge of ₹400 for domestic travel and higher for international travel last month.

Minister for Civil Aviation Ram Mohan Naid, in a post on X said: “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.”

#### LPG under-recovery presently at ₹380 for every cylinder

The Petroleum Ministry informed that under-recoveries of oil-marketing companies (OMCs) stand at ₹380 for every cylinder at present. According to its estimates, they are looking at cumulative losses to scale ₹40,484 crore by the end of May.

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For context about the magnitude, OMCs’ under-recoveries stood at ₹60,000 crore in the erstwhile year, with the union government having to accord a compensatory bailout package of ₹30,000 crore. The rest were absorbed by OMCs.

Further, since the government sought to allocate commercial LPG to entities starting 20% to 70% until recently, 47,928 MT of the bottled hydrocarbon gas has been lifted in the country since March 14.

Further, the government sought to emphasise the latest increase in commercial cylinder prices followed a 44% spike in benchmark Saudi Contract prices between March and April, as 20-30% of global LPG find themselves stranded in the Strait of Hormuz.

It added that prices of commercial LPG are deregulated and market-determined, which are revised monthly. “Their consumption is less than 10% of the total LPG consumed in the country,” it stated.

Watch | LPG crisis in India: What’s the situation on ground?

#### Under-recovery on diesel ₹104.99/litre, petrol ₹24.4/litre

The Petroleum Ministry also informed that public-sector OMCs are incurring losses of about ₹24.4 for every litre of petrol and ₹104.99 per litre on diesel as of today.

On March 27, seeking to aid the OMCs’ under-recoveries, the Union Govt had reduced the Special Additional Excise Duty (SAED) on petrol and diesel by ₹10 for every litre. ““... It directly reduces the under-recoveries being absorbed by public sector oil marketing companies (OMCs) — IOCL, BPCL, HPCL — who have continued to supply fuel to Indian consumers at prices well below their cost of supply,” the petroleum ministry had stated.

On Wednesday (April 1, 2026), it reiterated OMCs have only revised prices of premium variant of fuel, that is, ‘XP95’, ‘Power95’ and ‘Speed’. According to their estimates, their sales form 5% of the overall volume of petrol that is sold in the country.

“They are purchased by motorists, at a premium, by choice,” it stated.

Published - April 01, 2026 08:18 am IST

Related Topics

West Asia / diesel fuel / LPG crisis / unrest, conflicts and war / war