New Delhi, Oct. 6: The Centre is holding discussions with airlines and oil marketing companies (OMCs) over rising aviation turbine fuel (ATF) prices amid the ongoing crisis in West Asia, Union Civil Aviation Minister Ram Mohan Naidu said on Tuesday.
The minister’s remarks came days after IndiGo announced an increase in its fuel surcharge, citing the sharp rise in jet fuel prices amid geopolitical tensions.
“One of the most important things is the West Asia crisis and how it’s putting a big burden on ATF prices. But we are still in discussion both with the airlines and also the OMCs. Let us see how the discussion unfolds,” Naidu told reporters on the sidelines of the IFQM Symposium 2026 conference here.
Naidu said the Civil Aviation Ministry would consult all concerned stakeholders before taking any decision on measures related to the impact of rising ATF prices.
“The ministry is going to have a meeting with the stakeholders. And once we understand the point of view from all the stakeholders, then we will take a decision,” he said.
The rise in aviation fuel costs has emerged as a concern for airlines as the West Asia crisis has disrupted global energy markets and added pressure to fuel prices. Any sustained increase in ATF costs can raise operating expenses for carriers and put upward pressure on airfares.
At the conference, Naidu also outlined the government’s long-term plans for the aviation sector, including increasing the use of sustainable aviation fuel (SAF), developing multiple airport hubs and strengthening India’s domestic aerospace manufacturing capabilities.
India has mandated that 1 per cent of fuel used on international flights should come from SAF by 2027. The requirement is scheduled to increase to 2 per cent by 2028 and 5 per cent by 2030.
The minister said the government was also in discussions with state-run oil refiners — Indian Oil Corporation Ltd (IOCL), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) — on producing SAF in accordance with global standards.
Naidu said India was seeking to establish itself as a global aviation hub by developing multiple airport hubs across the country. The government also envisages a hub-and-spoke model under which passengers from smaller cities could connect to long-haul international destinations through domestic aviation gateways.
On aircraft manufacturing, the minister said engine production remained a critical capability for India’s aerospace ambitions. He said the country was pursuing a phased approach, beginning with maintenance, repair and overhaul (MRO) activities and component manufacturing.
He also pointed to progress in indigenous helicopter engine development and said expertise developed in the defence sector could eventually contribute to India’s ambitions in civil aviation manufacturing.
The government’s focus, he said, extends beyond expanding air connectivity to building domestic capabilities across the aviation value chain, including fuel, maintenance, components and aircraft manufacturing.
