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The authorities said that owed to the situation successful the Middle East, planetary ATF prices person accrued 2.5 times. (AI image)
Amid the prolonged Middle East conflict, the authorities has approved an Aviation Turbine Fuel (ATF) Price Stabilisation Fund to safeguard problems being faced by airlines, lipid selling companies and fliers.
This volition beryllium a aforesaid sustaining revolving fund.The Union Cabinet connected Wednesday approved the money of Rs 10,000 crore enactment bundle to support airlines from the crisp surge successful aviation substance prices triggered by the ongoing turmoil successful West Asia. The money volition beryllium channelled done interest-free advances to Oil Marketing Companies. These funds volition beryllium utilized to compensate OMCs whenever planetary ATF prices stay importantly supra the benchmark level prescribed nether the scheme.
The determination is aimed astatine preventing abrupt spikes successful substance costs from disrupting hose operations astatine a clip erstwhile planetary vigor markets stay highly volatile.A cardinal diagnostic of the statement is the instauration of a fixed-price model for ATF. By reducing uncertainty astir substance expenses, the authorities hopes to supply airlines with greater visibility implicit operating costs and let them to program their finances much effectively.
The strategy volition beryllium unfastened to scheduled Indian carriers operating some home and planetary services.The support, however, is not intended to beryllium permanent. Once planetary substance prices statesman to ease, the magnitude extended to OMCs volition beryllium gradually recovered and returned to the Consolidated Fund of India. The betterment process volition proceed until the full beforehand has been settled.
Aviation Turbine Fuel (ATF) Price Stabilisation Fund: Top points
According to the authorities the caller money volition payment successful the pursuing ways:
- Help stabilise ATF prices for scheduled Indian carriers
- Prevent disruption of hose operations
- Shield aerial passengers from fare spikes driven by planetary terms surge
- Protect 77 lakh jobs babelike connected the aviation ecosystem
- Safeguard important nationalist concern successful airdrome infrastructure by keeping hose operations viable
- Maintain determination and planetary connectivity to Europe, North America and Central Asia fixed Pakistan airspace closure
The authorities said that owed to the situation successful the Middle East, planetary ATF prices person accrued 2.5 times. They person gone up from Rs 60.5 per litre successful March 2026 to much than treble levels of Rs 142 per litre successful May 2026.The authorities has capped ATF prices astatine Rs 75.6 per litre for home operations. ATF accounts for astir 40% of operating outgo for airlines, and the terms surge has severely affected some airlines and lipid selling companies.
