Cabinet approves ₹10,000 crore ATF price stabilisation fund to shield airlines, jet fuel prices
The Indian Union Cabinet has approved a ₹10,000 crore fund to stabilize jet fuel prices for airlines amid rising costs due to geopolitical tensions. This budgetary support will be provided as interest-free advances to oil-marketing companies for both domestic and international airline operations. The initiative aims to prevent fare spikes and ensure operational continuity for scheduled carriers.
- ▪The fund is designed to cushion airlines from escalating jet fuel prices caused by the conflict in West Asia.
- ▪Scheduled airlines will receive budgetary support in the form of interest-free advances to oil-marketing companies.
- ▪ATF prices have surged significantly, prompting the government to intervene to protect air passengers from fare increases.
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Seeking to cushion India’s airlines in the backdrop of escalating jet fuel prices because of the conflict in West Asia, the Union Cabinet on Wednesday (June 3, 2026) approved a one-time budgetary support of ₹10,000 crore to oil-marketing companies (OMCs) towards a price stabilisation fund.The budgetary support would be made available to scheduled airlines in India for both domestic and international operations and would be provided in the form of interest-free advances to OMCs.Hardeep Singh Puri, Union Petroleum Minister, held that the price stabilisation fund would help stabilise ATF prices in the backdrop of the West Asia conflict.
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