Kolkata, New Delhi, INDIA. New York, USA.
Business To Business, New Delhi, 02nd July, 2026: The Centre's Rs 10,000-crore jet fuel price stabilisation programme has failed to gain traction, with no airline opting to participate in the scheme as declining international crude oil prices have reduced its attractiveness, sources said.
Last month, the Union Cabinet approved the one-time Rs 10,000-crore scheme to compensate state-owned oil marketing companies for supplying aviation turbine fuel (ATF) to airlines at capped prices for up to three years. The initiative was aimed at protecting carriers from elevated fuel costs arising from the West Asia crisis.
Under the voluntary scheme, airlines were required to sign agreements with oil marketing companies to avail themselves of the capped ATF price of around Rs 115 per litre.
However, according to sources, no airline has signed up for the programme so far, as the recent fall in international oil prices has lowered ATF costs, reducing the need for the price protection mechanism.