ATF prices capped at ₹75.60 per litre: Government also approves ₹10,000 crore fund, this will control jet-fuel prices

The government approved ₹10,000 crore Aviation Turbine Fuel (ATF) Price Stabilization Fund to provide relief to airlines, oil marketing companies (OMCs) and air travelers amid the Middle East conflict. Apart from this, the government has fixed (capped) the price of ATF for domestic flights at ₹ 75.60 per liter. These decisions have been taken to stabilize the rising prices of ATF. This fund has been approved in the Union Cabinet meeting held in New Delhi on Wednesday (June 3). This fund will control fluctuations in ATF prices. This fund will be used for both domestic and international air operations. Prices increased 2.5 times between March and May, capping at ₹75.6 According to the government, there has been a huge jump in the prices of aviation fuel (ATF) in the international market due to the Middle East crisis. The price of ATF, which was Rs 60.5 per liter in March 2026, has more than doubled to Rs 142 per liter in May 2026. To provide relief from rising prices, the government has capped the price of ATF for domestic flights at Rs 75.6 per litre. ATF alone accounts for about 40% of the total operating expenses of airlines. In such a situation, this sharp rise in prices had created huge economic pressure on both airlines and oil companies. 6 big benefits from the new fund: The government has said that with the help of this new fund of ₹ 10,000 crore, the aviation sector will get these 6 big benefits… OMC will get budgetary support in the form of interest-free advance. Union Minister Ashwini Vaishnav said that the government has decided to provide ATF price stabilization support to scheduled Indian airlines for their domestic and international operations. For this, one-time budgetary assistance up to a maximum of ₹ 10,000 crore has been sanctioned to Oil Marketing Companies (OMCs). This budgetary support will be given to OMCs in the form of interest free advances through the Demands for Grants of the Ministry of Petroleum and Natural Gas. The government will withdraw the money if international prices fall. This assistance of the government is completely temporary. When ATF prices moderate in the international market, the differential amount will be recovered from the OMC. This recovered amount will be deposited back into the Consolidated Fund of India. This arrangement will continue until the entire assistance amount is completely recovered and settled. There will be an MoU between OMCs and airlines. The scheme will be available to all scheduled Indian carriers (airlines) who are willing to join. This benefit will be available on both domestic and international operations. A Memorandum of Understanding (MoU) will be signed between the participating Indian airlines and the OMCs to implement this arrangement. Ministry of Civil Aviation and Ministry of Petroleum and Natural Gas will be the signatories to this MoU. Airlines will be able to purchase ATF only from OMCs for 3 years. Under this one-time arrangement, airlines joining the scheme will purchase ATF only from OMCs for a maximum period of three years. However, this arrangement will be subject to annual review. If the advance amount given by the government is fully recovered before three years, this arrangement will end at that time. What is Price Stabilization Fund (PSF)? Price Stabilization Fund is a special fund created by the government, the purpose of which is to prevent excessive fluctuations in the prices of an essential commodity (like air fuel in this case). When prices rise too much in the global market, the money from this fund is used to protect companies and common people from losses. Since it is a ‘revolving fund’, it re-funds or regenerates itself when the situation becomes normal. Also read this news… Up to 12.5% ​​extra tariff may be imposed on Indian goods: America accuses 54 countries of forced labour; Talks on trade deal in Delhi: America has placed 54 economies of the world including India in the list which have failed to stop the import of goods made with forced labour. On this basis, America has proposed to impose additional custom duty. Read this QA report… Read the full news…



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