Jet Fuel Prices Surge in India as Hormuz Oil Crisis Spirals
India Absorbs Partial Fuel Price Hike
India moved Wednesday to raise aviation turbine fuel (ATF) prices, as state-owned oil marketing companies — acting in coordination with the Civil Aviation Ministry — opted for a measured rather than full-scale adjustment to cushion the blow on domestic carriers.
The ministry announced via US social media company X that only a "partial and staggered" 25% increase in ATF prices had been passed on to airlines. The calibrated approach reflects the sensitivity of the move for a country that sources nearly 50% of its energy needs from the Middle East — a supply relationship valued at $180 billion in 2024.
International routes, however, will bear the full brunt of the price surge.
"Foreign routes will pay for the full increase in ATF prices consistent with what they pay in other parts of the world," the ministry said.
Domestic carriers face a comparatively lighter burden. According to a news agency, airlines operating within the country will absorb a more modest 8.5% increase.
The government also moved on commercial liquefied petroleum gas, hiking cylinder prices on the same day. The Civil Aviation Ministry pointed directly to upstream cost pressures in explaining the decision.
"April 1 price increase in commercial cylinder price is due to a 44% surge in the Saudi contract price…as 20-30% of global LPG supplies are stuck in (the) Strait of Hormuz," the ministry wrote in another post on X.
The Strait of Hormuz — a critical artery for global oil flows — has been effectively shut down by Iran in connection with the ongoing Middle East war, strangling supply chains for energy-dependent economies across the region.
Taiwan Hikes Fuel Surcharges
Across the Taiwan Strait, the ripple effects proved equally disruptive. Taiwanese airlines are set to raise domestic fares following a government decision to impose higher fuel surcharges on both short- and long-haul international routes, a direct consequence of crude oil prices driven higher by Middle East instability, media reported Wednesday.
The revised surcharges are scheduled to take effect April 7 — a timeline that underscores the urgency of the situation. The financial logic is stark: fuel expenditure represents approximately 40% of airlines' total operating costs, according to market estimates, making ATF price swings an existential variable for carriers.
Taiwan procures roughly 40% of its energy products from the Middle East, a supply relationship worth approximately $47 billion in 2024 — leaving the island economy acutely exposed to disruptions in the Strait of Hormuz.
Philippines Opens Diplomatic Channel With Iran
In the most assertive response among the three nations, the Philippines announced Wednesday it is launching direct diplomatic talks with Tehran to secure the safe passage of fuel shipments navigating the Strait of Hormuz en route to the Southeast Asian archipelago.
The move carries historic weight: Manila holds the distinction of being the first country worldwide to formally declare a state of emergency specifically to address its energy needs since the outbreak of the Middle East conflict. In 2024, the Philippines paid approximately $16 billion for energy imports sourced from the Middle East — a figure that illustrates the urgency driving Manila's diplomatic outreach.
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