CURRENT AFFAIRS | 2 APRIL 2026
CLAT GK + ECONOMIC POLICY & CONSTITUTIONAL LAW
– DPSP Article 39(b) — distribution of material resources
– Essential Commodities Act 1955 and energy regulation
– CCS constitutional role under Article 77
– India’s energy import dependence and economic sovereignty
What Happened: ATF Price Surge and CCS Emergency Meeting
On 1 April 2026, India hiked Aviation Turbine Fuel (ATF) prices significantly amid surging global energy prices caused by the West Asia conflict and the effective closure of the Strait of Hormuz. ATF prices in Delhi surged to Rs 1,04,927 per kilolitre, with raw international prices crossing Rs 2.07 lakh per kilolitre — a historic first.
The Ministry of Petroleum and Natural Gas intervened by imposing a mandatory 25% cap on monthly ATF price hikes for domestic carriers. Oil marketing companies implemented only a partial and staggered hike of approximately Rs 15 per litre for domestic airlines, while foreign carriers must pay full international rates.
Simultaneously, PM Narendra Modi chaired a Cabinet Committee on Security (CCS) meeting, directing all departments to diversify LPG and LNG sources and ensure fertilizer availability to safeguard citizens from the impact of the conflict.
Why This Is Happening: The Strait of Hormuz Factor
The Strait of Hormuz, through which approximately 20% of the world’s oil transits daily, has been severely disrupted by the ongoing conflict in West Asia. India imports approximately 85% of its crude oil requirements, making it one of the most vulnerable major economies to supply disruptions in this region.
Global oil prices have increased by approximately 50% since the conflict escalated. The rupee’s depreciation of 11% in FY26 has further amplified the impact on domestic fuel costs.
1. Article 39(b) — DPSP: Directs the State to ensure that ownership and control of material resources of the community are distributed to subserve the common good. Petroleum and energy are critical material resources.
2. Essential Commodities Act 1955: Empowers the Central Government to regulate production, supply, and distribution of essential commodities including petroleum products, fertilizers, and LPG.
3. PNGRB Act 2006: The Petroleum and Natural Gas Regulatory Board regulates refining, processing, storage, transportation, distribution, and marketing of petroleum products.
4. Article 77 — CCS Powers: The Cabinet Committee on Security derives its authority from Rules of Business framed under Art 77. It is chaired by the PM and deals with defence, security, and strategic matters.
Government’s Response Strategy
- 25% price cap — Government capped monthly ATF hike at 25% for domestic carriers to prevent airfare shock
- LPG/LNG diversification — CCS directed departments to identify alternative suppliers beyond West Asia
- Fertilizer supply security — Special focus on ensuring fertilizer availability for kharif season
- Strategic reserves — Experts urging expansion of strategic petroleum reserves as buffer
- Fuel surcharges — Airlines like IndiGo and Air India introducing surcharges of Rs 150 to $200
– DPSP Art 39(b): This crisis tests the State’s duty to distribute material resources for common good — a frequently tested DPSP in CLAT
– Essential Commodities Regulation: The EC Act 1955 gives government sweeping powers during emergencies. The price cap on ATF is an exercise of these powers
– CCS Constitutional Role: Understanding cabinet committee structure and Art 77 is important for CLAT GK. The CCS is the highest decision-making body on security matters
– Energy Geopolitics: Questions on Strait of Hormuz, India’s oil dependency, and energy security appear regularly in CLAT GK sections
Impact on Citizens and Economy
ATF constitutes up to 40% of airline operating expenses. Combined with longer flight routes due to airspace restrictions in West Asia and a weaker rupee, passengers can expect higher ticket prices, fewer discounts, and reduced flight options in coming weeks.
The LPG crisis is also impacting households and commercial establishments, with commercial LPG prices seeing sharp increases that burden restaurants, hotels, and small food businesses.
| ATF Price (Delhi) | Rs 1,04,927/KL (capped) |
| Raw International Price | Rs 2.07 lakh/KL (record) |
| Government Cap | 25% monthly hike limit |
| India Oil Import | ~85% of crude oil |
| Strait of Hormuz | ~20% of world oil transits |
| Key Articles | Art 39(b), Art 77 |
F — Foreign dependence (85% oil imports)
U — Undermine by Hormuz disruption
E — Essential Commodities Act powers invoked
L — LPG/LNG diversification ordered by CCS
Source: Republic World, Free Malaysia Today, Business Today — 1 April 2026
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