𝗔𝗧𝗙 𝗣𝗿𝗶𝗰𝗲 𝗦𝘁𝗮𝗯𝗶𝗹𝗶𝘇𝗮𝘁𝗶𝗼𝗻 𝗙𝘂𝗻𝗱 𝗔𝗽𝗽𝗿𝗼𝘃𝗲𝗱 𝗔𝘁 𝗥𝘀 𝟭𝟬,𝟬𝟬𝟬 𝗖𝗿𝗼𝗿𝗲

The Union Cabinet approved a Rs 10,000 crore ATF Price Stabilization Fund on Wednesday. The fund will support airlines and Oil Marketing Companies during the Middle East crisis.

The fund operates as a self-sustaining revolving fund. It provides interest-free advances to OMCs. The government will compensate OMCs when international Aviation Turbine Fuel prices stay above the benchmark level set under the scheme. A fixed-price framework for ATF will reduce uncertainty around fuel costs. Scheduled Indian carriers operating domestic and international flights are eligible for the support.

International ATF prices have increased 2.5 times due to the conflict in the Middle East. Prices rose from Rs 60.5 per litre in March 2026 to Rs 142 per litre in May 2026. The government has capped domestic ATF prices at Rs 75.6 per litre. Fuel accounts for about 40% of airline operating costs.

The support is temporary. Once global fuel prices fall, the government will recover the advances and return the money to the Consolidated Fund of India. The recovery will continue until the full amount is repaid.

The fund will deliver the following benefits:

Source: The Times of India