Government Unveils ₹10,000 Crore ATF Price Stabilization Package

MP Kesari Desk:- To buffer the domestic travel ecosystem from severe geopolitical friction in West Asia, the Union Cabinet, chaired by Prime Minister Narendra Modi, has passed a landmark relief package.

The administration has approved a one-time ₹10,000 crore ATF Price Stabilization Fund to shield scheduled Indian airlines from erratic international fuel spikes.

This emergency corpus will be distributed via interest-free advances to state-backed Oil Marketing Companies (OMCs), compensating them directly whenever the Import Parity Price of aviation turbine fuel surpasses domestic benchmarks.

[Global ATF Price Trend (March-May 2026)]
March 2026:  ₹60.5 / litre  ======> May 2026:  ₹142 / litre (2.5x Surge)
Government Capped ATF Domestic Rate under Support Scheme: ₹75.6 / litre

Mitigating Dynamic Operating Costs and Fares

Jet fuel normally makes up a heavy 40% to 60% of an airline's total operating cost, making severe market spikes an immediate threat to airline survival and passenger ticket pricing.

Civil Aviation Minister Ram Mohan Naidu highlighted that this fixed-price framework will remain functional for up to 36 months.

The strategic move prevents abrupt airfare hikes, safeguards over 77 lakh direct and indirect aviation jobs, and protects valuable domestic airport infrastructure investments.