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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- ▪ US-Iran war: Rs 10,000 crore ATF Price Stabilization Fund approved for OMCs — Times of India — Top
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| Original publisher | The Hindu — Top |
| Canonical URL | https://www.thehindu.com/business/Industry/cabinet-approves-10000-crore-atf-price-stabilisation-fund-to-shield-airlines-jet-fuel-prices/article71056863.ece |
| Publication time | Wed, 03 Jun 2026 18:07:31 +0530 |
| Retrieval time | 2026-06-03T12:42:07.659Z |
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Opening excerpt (first ~120 words) tap to expand
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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