New Delhi, April 2 -- Airlines got a fuel price scare after state-owned Indian Oil Corporation (IOC) more than doubled its aviation turbine fuel (ATF) price, only to roll back most of the hike within hours on Wednesday.

Its initially notified price for jet fuel was Rs.207,341 a kilolitre for April in New Delhi, up 115% from March, marking its highest level ever. This was swiftly revised to Rs.104,927 for domestic airlines, a mere 8.5% increase.

Foreign airlines, however, will have to pay the higher price, officials said. Expressions of relief from Indian air-carriers suggest a government role in the downward revision. True, it is consistent with the Centre's stated preference for gradual hikes in response to an oil shock caused by the w...