Cabinet approves ₹10,000 crore ATF price stabilisation fund to shield airlines, jet fuel prices
The Indian Union Cabinet has approved a ₹10,000 crore price stabilisation fund to support airlines amid rising jet fuel costs caused by the conflict in West Asia. The funds will be provided to oil-marketing companies as interest-free advances.
Why it matters
This intervention aims to prevent a spike in air travel costs and stabilize the aviation sector during regional geopolitical instability.
Seeking to cushion India’s airlines in the backdrop of escalating jet fuel prices because of the conflict in West Asia, the Union Cabinet on Wednesday (June 3, 2026) approved a one-time budgetary support of ₹10,000 crore to oil-marketing companies (OMCs) towards a price stabilisation fund.
The article reports on government policy and its stated rationale without taking a stance on the efficacy of the policy.
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