The Union Cabinet on Wednesday approved a one-time budgetary support of up to Rs 10,000 crore for oil marketing companies (OMCs) to provide ATF price stabilisation for scheduled Indian airlines, as surging fuel prices driven by the ongoing West Asia crisis continue to weigh heavily on the aviation sector.
Announcing the decision, Union Minister Ashwini Vaishnaw said ATF prices have risen sharply due to the conflict in West Asia and that the fund is aimed at cushioning the impact on airlines and passengers. International ATF prices have surged nearly 2.5 times from Rs 60.5 per litre in March 2026 to Rs 142 per litre in May 2026.
