Cabinet approves ₹10,000 crore ATF price stabilisation fund to shield airlines, jet fuel prices

Key points

• 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 budgetary support would be made available to scheduled airlines in India for both domestic and international operations and would be provided in the form of interest-free advances to OMCs.
• Hardeep Singh Puri, Union Petroleum Minister, held that the price stabilisation fund would help stabilise ATF prices in the backdrop of the West Asia conflict.
• “The fund will help stabilise ATF prices for scheduled Indian carriers and will prevent disruption of airline operations while protecting air passengers from fare spikes driven by the geopolitical conflict involving several energy producers,” read his social media post.
• The budgetary support would function like a self-sustaining revolving fund.