In a separate but economically significant development, India announced that it will cap monthly increases in aviation turbine fuel prices for domestic flights at 25%, the government said in a statement on Thursday. The move follows mounting pressure on the aviation sector due to unprecedented fuel price surges.
On Wednesday, the Indian government had stepped in to limit the impact of record-high jet fuel prices on airlines and air fares, as Indian public sector oil companies have more than doubled the price of aviation turbine fuel. The sharp escalation has placed considerable strain on airline operations and raised concerns over passenger affordability.
Prices in New Delhi have reached Rs 207,341.22 (,212 or €1,911) per kiloliter, Indian media reported, while the price of jet fuel for international flights has risen by 107%. The steep rise reflects a broader trend affecting both domestic and global aviation markets.
Indian oil companies determine the market price of aviation fuel and announce the revised rate on the first day of every month, making the pricing mechanism sensitive to global fluctuations. The hike is due in part to the disrupted fuel supply chain in the Middle East, and partly due to the Indian rupee's worst performance in 14 years.
The developments collectively highlight the dual pressures facing India, from geopolitical tensions impacting maritime safety to economic challenges driven by volatile fuel markets, underscoring the urgent need for stability and coordinated international respons
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