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Ram Mohan Naidu Flags Possible Airfare Impact as Oil Prices Surge Amid Iran Conflict

The government is coordinating across ministries to cushion passengers from rising aviation fuel costs triggered by global oil volatility 

21-03-2026
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Civil Aviation Minister Ram Mohan Naidu on Friday said the ongoing tensions in the Middle East and rising crude oil prices could push up aviation costs, with a potential effect on ticket prices in the coming weeks.

He explained that the impact would primarily be seen in the pricing of Air Turbine Fuel (ATF), which is revised at the start of every month. According to him, any changes driven by the current global situation are likely to reflect from April 1. The government, he added, is closely monitoring developments and remains in regular contact with airlines to understand operational challenges.

Naidu highlighted that the conflict could have wider economic implications for the aviation sector, affecting airline expenses and route operations, particularly to destinations in the Gulf region. Despite these concerns, he stressed that maintaining safe flight operations remains a top priority.

Describing the response as a coordinated effort, the minister said multiple departments—including civil aviation, external affairs, and petroleum—are working together to manage the situation and reduce any adverse impact on travellers.

Fuel costs form a significant portion of airline expenditure, often accounting for nearly 40% of operating expenses. With global crude prices climbing, several Indian carriers such as Air India, IndiGo, and Akasa Air have already introduced additional fuel surcharges on tickets.

While ATF prices are determined by oil companies, airlines typically adjust fares through surcharges to offset rising costs. The government has indicated it will explore measures to ensure that any increase does not significantly burden passengers or disrupt services.

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