New Delhi, Oct 2026 : The government is holding discussions with airlines and oil marketing companies (OMCs) to address rising aviation turbine fuel (ATF) prices amid the continuing crisis in West Asia, Union Civil Aviation Minister Ram Mohan Naidu said on Tuesday.
Naidu's remarks came after IndiGo announced an increase in fuel charges for domestic and international flights from October 6, citing a sharp rise in ATF prices. The airline said the latest month-on-month increase in fuel prices had exceeded 14 per cent, pushing ATF costs to among their highest levels in the past decade.
“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 in New Delhi.
The minister said the Civil Aviation Ministry would consult all stakeholders before taking any decision on measures to address the impact of higher fuel costs.
“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.
IndiGo's revised fuel charges apply to new bookings from October 6. The airline has introduced distance-based charges on domestic routes, with the increase aimed at partially offsetting the impact of higher fuel costs.
Beyond the immediate challenge of rising ATF prices, Naidu outlined the government's broader vision for the aviation sector, including greater adoption of sustainable aviation fuel (SAF), development of multiple airport hubs and expansion of domestic aerospace manufacturing.
India has mandated SAF blending for international flights at one per cent from 2027, increasing to two per cent in 2028 and five per cent by 2030. The government is also engaging with state-run refiners Indian Oil Corporation Ltd, Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd on SAF production in line with global standards.
Naidu said India also aims to emerge as a global aviation hub by developing multiple airport hubs and strengthening a hub-and-spoke model. Under this approach, passengers from smaller cities could connect to long-haul international flights through major domestic gateways.
On aircraft manufacturing, the minister said engine production remains a critical capability for India. The government is pursuing a phased approach, beginning with maintenance, repair and overhaul (MRO) operations and component manufacturing.
He also pointed to progress in indigenous helicopter engine development, noting that expertise generated through the defence sector could eventually contribute to India's civil aviation manufacturing ambitions.
The government is simultaneously seeking to strengthen India's aerospace manufacturing ecosystem, with global aircraft manufacturers increasingly working with Indian companies and MSMEs.
