Ajay Singh, Chairman and Managing Director of SpiceJet, has issued a formal statement welcoming the government’s decision to cap the April 2026 aviation turbine fuel price increase at a partial level, describing it as a significant relief for the Indian aviation industry at a time of unprecedented global uncertainty.
The statement, issued on April 1, 2026, is one of the most direct expressions of airline industry relief following a day in which ATF pricing created one of the most dramatic and confusing mornings in recent Indian aviation history before the government’s intervention brought clarity.
What SpiceJet’s Chairman Said
Singh specifically thanked Union Minister of Civil Aviation Ram Mohan Naidu Kinjarapu and Ministry of Civil Aviation Secretary Samir Sinha for their leadership and proactive intervention in securing a moderated adjustment to ATF prices. He described their timely intervention as going a long way in helping airlines navigate one of the most challenging global crises in recent times, marked by severe external disruptions and volatility in fuel markets.
The statement closed with a broader acknowledgement of the government’s track record: “The Government has, time and again, demonstrated strong and reassuring leadership, steering Indian aviation through global headwinds with clarity and resolve. This decision once again reinforces that commitment.”
For SpiceJet specifically, the ATF relief carries particular weight. The airline has been navigating a prolonged period of financial stress and restructuring. A 115 percent ATF increase, which the initial IOC notification suggested before the government’s intervention, would have been potentially existential for a carrier in SpiceJet’s financial position. The capped increase at approximately 8 to 9 percent month on month, while still adding to costs, is a categorically different challenge from the full market-rate pass-through that global benchmarks would have produced.
What Actually Happened With ATF Today — The Full Timeline
The government’s ATF intervention was the defining story of April 1, 2026 for Indian aviation and it unfolded in stages across the morning.
At the start of the day, Indian Oil Corporation published ATF pricing for April on its website that showed a staggering 114.5 percent increase for domestic flights in Delhi, taking the price from Rs 96,638 per kilolitre in March to Rs 2,07,341 per kilolitre. Mumbai saw a 115 percent increase from Rs 90,451 to Rs 1,94,968. For international flights, Delhi pricing crossed $1,690.81 per kilolitre, up 107 percent from $816.91, breaking the $1,000 per kilolitre mark for the first time in Indian aviation history.
These figures, reflecting the full formula-driven market price generated by ATF’s deregulated monthly pricing mechanism, triggered immediate alarm. Airlines, analysts, and media all reported the figures as the confirmed April prices. IOC itself subsequently clarified that the website prices were for non-scheduled, adhoc, and charter operations and that scheduled carrier prices would be announced separately, adding to the confusion.
The Ministry of Petroleum and Natural Gas then issued the definitive explanation. ATF prices in India are deregulated and revised monthly based on international benchmarks. Due to the closure of the Strait of Hormuz and the extraordinary situation in global energy markets, the formula-driven increase would have exceeded 100 percent. The Saudi Contract Price for LPG, used as a benchmark indicator for broader energy pricing, had itself jumped 44 percent from $542 per metric tonne in March to $780 per metric tonne for April as 20 to 30 percent of global energy supplies remain bottled up in the Strait.
In order to insulate domestic travel costs from this extraordinary price spike, PSU Oil Marketing Companies of the Ministry of Petroleum, in consultation with the Ministry of Civil Aviation, made the policy decision to pass through only a partial and staggered increase of 25 percent, equivalent to Rs 15 per litre, to domestic airlines. International routes will pay the full market price increase consistent with what carriers pay at airports elsewhere in the world.
OMCs then deleted the earlier announcement and published the corrected final city-wise rates. Delhi ATF for domestic routes is now Rs 1,04,927 per kilolitre. Kolkata is Rs 1,09,450. Mumbai is Rs 98,247. Chennai is Rs 1,09,873. All four cities are below Rs 1,10,000 per kilolitre, dramatically different from the Rs 2,07,341 that appeared in the initial notification.
What the Numbers Mean for Airlines
The difference between what the market demanded and what domestic airlines will actually pay in April is approximately Rs 95,000 to Rs 1,03,000 per kilolitre depending on the city, absorbed by OMC balance sheets as a direct result of the Ministry of Civil Aviation’s intervention. The government has estimated that OMC cumulative losses on domestic LPG alone will reach Rs 40,484 crore by end of May. The ATF subsidy adds further to OMC balance sheet pressure that is being absorbed across multiple fuel categories simultaneously.
For airlines, jet fuel accounts for 40 to 45 percent of total operating costs. An 8 to 9 percent month on month ATF increase rather than a 115 percent increase is the difference between a manageable cost adjustment and a potential wave of route suspensions and airline financial distress. IndiGo, Air India, Akasa, and SpiceJet were all watching the morning’s developments with extraordinary attention. Singh’s statement reflects the collective relief of an industry that came very close to a very different April 1.
The Ministry of Civil Aviation and Ministry of Petroleum have between them managed one of the more complex fuel pricing interventions in Indian aviation history in a single morning. The airlines are grateful. SpiceJet’s chairman said so on the record.
This article incorporates the official statement from Ajay Singh, Chairman and Managing Director of SpiceJet, the Ministry of Petroleum and Natural Gas official statement on ATF pricing, and IOC’s revised April 2026 ATF pricing notification. All figures are sourced from official government communications. This article is for informational purposes only and does not constitute financial or investment advice.