National
03 Jun, 2026
Cabinet approves Rs 10,000 cr jet fuel stabilisation fund to ease airline cost pressures
Business To Business, New Delhi, 3rd June, 2026: The Union Cabinet on Wednesday approved a ₹10,000 crore fuel price stabilisation programme aimed at supporting airlines and insulating the aviation sector from volatile global fuel prices driven by the ongoing West Asia crisis.
Under the scheme:
- State-owned oil marketing companies (OMCs) will receive a one-time, interest-free advance of up to ₹10,000 crore.
- This funding will help OMCs supply aviation turbine fuel (ATF) to scheduled Indian airlines at a fixed benchmark price for both domestic and international operations.
- The government has set a capped ATF price of ₹75.6 per litre for domestic carriers, significantly below prevailing market rates.
The initiative is intended to reduce operational pressure on airlines facing rising fuel costs, which form a major component of airline expenditure and are highly sensitive to global crude oil fluctuations.
Briefing the media, Ashwini Vaishnaw said the measure would help stabilise the aviation sector and ensure that airlines are not disproportionately affected by external geopolitical developments.
The programme is also expected to support fare stability for passengers by preventing sharp increases in ticket prices due to fuel cost spikes.
The move comes amid heightened uncertainty in global energy markets, where tensions in West Asia have led to volatility in crude oil and aviation fuel prices, directly impacting airline economics worldwide.