Big relief for airlines as govt caps jet fuel prices, clears Rs 10,000-crore fund

Key points

• The Union Cabinet has approved a Rs 10,000 crore Aviation Turbine Fuel (ATF) Price Stabilisation Fund to help the aviation sector cope with the sharp rise in global fuel prices.
• The decision comes amid recent developments in West Asia that have pushed up international ATF prices and increased pressure on airlines.
• International ATF prices increased 2.5 times between March and May 2026. During the same period, ATF prices jumped from Rs 60.5 per litre in March to Rs 142 per litre in May.
• To provide relief, the government has capped ATF prices for domestic airline operations at Rs 75.6 per litre.
• Union Home Minister Amit Shah on X wrote, "The Rs 10,000 crore Price Stabilisation Fund for Scheduled Indian Airlines towards Aviation Turbine Fuel pricing, approved by Union Cabinet, is Modi Ji's shield against global energy crisis.