New Delhi, April 2 -- State-run oil companies on Wednesday more than doubled aviation turbine fuel prices and raised commercial LPG by 10.4%, before the government stepped in to limit the ATF increase to 8.6% for scheduled domestic airlines - which the government said shields passengers from an immediate fare shock while leaving open the possibility of further hikes. ATF prices are revised monthly by state-run oil marketing companies against international benchmarks. Accordingly, they initially raised ATF 114.55%, from Rs.96,638 per kilolitre to Rs.2,07,341 per KL in Delhi, tracking the surge in global energy costs following the near-closure of the Strait of Hormuz. OMCs also raised commercial LPG prices by Rs.195.50 to Rs.2,078.50 per 19-kg cylinder in Delhi on Wednesday. It is the second hike in under a month: prices were raised by Rs.114.50 on March 7, taking the cumulative increase to about 17.5% in four weeks. Hotels, restaurants and hostels, which rely on commercial cylinders, bear the full cost of both increases. On March 7, domestic cooking gas was also raised by Rs.60 to Rs.913 per 14.2-kg cylinder in Delhi, its highest since August 2023. An executive at one of the OMCs said the government stepped in shortly after the ATF revisions were announced on Wednesday morning. "After the government intervened and directed OMCs not to fully pass on the ATF rates to scheduled domestic airlines, they moderated ATF prices for scheduled domestic carriers," an OMC executive said, requesting anonymity. "Non-scheduled domestic carriers, chartered planes, corporate jets and helicopters will have to pay the new rate for ATF, which is Rs.2,07,341 per KL in Delhi. Similarly, foreign carriers have to pay $1,690.81 per KL. There is no logic to subsidise fuel for those who can afford it." Scheduled domestic airlines such as IndiGo, SpiceJet and Air India will pay Rs.1,04,927 per KL from Wednesday, he added. The relief may be temporary. At an inter-ministerial press conference, officials described the increase as "staggered" but could not elaborate on what further increases were planned or when, leaving domestic fare levels contingent on future government decisions. Nonetheless, IndiGo, India's largest carrier, said it would revise fuel charges on all new bookings from April 2 to reflect the higher costs. On domestic routes, the surcharge will range from Rs.275 per sector for flights up to 500 km to Rs.950 for routes above 2,000 km. International surcharges will be steeper - Rs.3,000 to Rs.5,000 for Gulf routes and up to Rs.10,000 for UK and Europe. The petroleum ministry, in a post on X, said OMCs had "passed only a partial and staggered increase of 25% (only Rs.15/litre) to the airlines", adding that foreign routes would "pay for the full increase in ATF prices consistent with what they pay in other parts of the world." Civil aviation minister K Ram Mohan Naidu said the "calibrated approach will help shield passengers from sharp fare increases, ease the burden on domestic airlines, and support the continued stability of the aviation sector at this crucial juncture." Pump prices of regular petrol and diesel have so far been held steady by state-run companies at Rs.94.77 and Rs.87.67 per litre respectively in Delhi, but under-recoveries are mounting. Officials said OMCs are losing Rs.24 a litre on petrol and Rs.105 on diesel against international benchmarks. The companies had already begun moving on non-retail categories: on March 20, industrial diesel sold in bulk to commercial users was raised Rs.21.92 per litre - a 25% increase - to Rs.109.59 in Delhi, and premium petrol went up Rs.2 to Rs.101.89. Private retailer Nayara Energy, which operates over 7,000 fuel stations, moved first on regular fuel: it raised petrol by Rs.5 and diesel by Rs.3 per litre on March 26, citing the absence of budget support available to state-run companies. The government has a Rs.30,000-crore provision for the current financial year to compensate OMCs for such losses. To contain domestic supply pressures, the government on March 26 reduced excise duty on petrol and diesel by Rs.10 per litre each and imposed export levies of Rs.21.5 per litre on diesel and Rs.29.5 per litre on ATF. Brent crude has surged about 42% in a month....