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Price Stabilization Fund for Aviation Fuel
June 10 , 2026
15 hrs 0 min
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- The Union Cabinet approved a one-time ₹10,000 crore support package to create a Price Stabilization Fund for Aviation Turbine Fuel (ATF).
- The fund is a temporary government mechanism to stabilise Aviation Turbine Fuel (ATF) prices for scheduled Indian airlines.
- It was created due to sharp global fuel price volatility after the West Asia crisis, which pushed ATF prices from about ₹60.50 per litre to ₹142 per litre.
- The fund provides financial support through Oil Marketing Companies (OMCs) to reduce sudden fuel cost shocks for airlines.
- It operates as a revolving mechanism where price differences are adjusted and recovered when fuel prices fall below benchmark levels.
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