Price Stabilization Fund for Scheduled Indian Airlines

On 3rd June 2026, the Union Cabinet approved one-time budgetary support not exceeding Rs.10,000 crore for Oil Marketing Companies (OMCs) to provide ATF price stabilisation support to Scheduled Indian Airlines for their domestic and international operations.

Background

  • The aviation sector has been severely affected by volatility in global ATF prices due to the ongoing West Asia crisis.
  • International ATF prices increased from Rs.60.50 per litre in March 2026 to Rs.142 per litre in May 2026.
  • ATF accounts for nearly 40% of airline operating costs, rising to almost 60% during extreme price volatility.
  • Indian carriers continue to procure ATF for international ....
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