India Caps Domestic Jet Fuel Price Under Rs 10,000‑Crore Stabilisation Fund

The Indian government approved a Rs 10,000‑crore aviation turbine fuel (ATF) stabilisation scheme, fixing the domestic jet fuel benchmark at about Rs 86 per litre (approximately Rs 75.6 per litre according to the Union Minister). The measure aims to moderate sudden fare increases by shielding airlines from volatile global fuel prices, which have risen from Rs 60.5 to Rs 142 per litre due to the West Asia conflict. Participation is voluntary and limited to Indian carriers.

Airlines such as Air India, IndiGo, SpiceJet and Akasa Air welcomed the intervention, saying it provides much‑needed cost stability for a sector where fuel accounts for roughly 40 % of operating expenses. While the scheme does not guarantee cheaper tickets, it is intended to limit fare spikes and support the broader aviation ecosystem amid ongoing geopolitical tensions.