India approves ₹10,000 crore ATF price‑stabilisation fund for airlines

The Union Cabinet, chaired by Prime Minister Narendra Modi, approved a one‑time budgetary support of up to ₹10,000 crore for Oil Marketing Companies to provide aviation turbine fuel (ATF) price‑stabilisation for scheduled Indian airlines operating domestically and internationally. The fund will be provided as interest‑free advances and will remain in force for 36 months, with annual reviews and repayment when international ATF prices fall below the benchmark.

The measure is aimed at shielding airlines from the sharp rise in ATF prices caused by the West Asia crisis – prices have risen about 2.5 times from roughly ₹60.5 per litre in March to ₹142 per litre in May 2026. A monitoring committee comprising the ministries of Civil Aviation, Petroleum & Natural Gas and the Department of Expenditure will oversee implementation. Officials said the scheme will help protect roughly 7.7 million jobs linked to the aviation ecosystem and provide greater cost predictability for the sector, benefiting tourism, trade and related industries.