Stories
India Likely to Review Rs 10000 Crore ATF Price Stabilisation Scheme
- •The Indian government is set to review the aviation turbine fuel price stabilisation scheme due to limited interest from airlines.
- •The 36-month scheme allocated Rs 10000 crore to help airlines manage fuel price volatility by procuring ATF at a fixed price.
- •Airlines have stayed away because locking in a three-year fixed price became unappealing when market-linked ATF prices fell below it.
- •Authorities plan to hold discussions with airlines and oil marketing companies to reassess the structure of the scheme.
Key Questions Answered
The Indian government is reviewing the scheme due to limited interest from airlines in availing the facility. This lack of participation stems from falling market-linked jet fuel prices, which made the mandatory three-year fixed price condition less attractive.
The Cabinet approved the ₹10,000 crore scheme in June 2026 to support airlines and oil marketing companies by helping manage extreme volatility and sharp price spikes in aviation turbine fuel following the West Asia crisis.
Airlines were required to commit to procuring aviation turbine fuel from oil marketing companies at a fixed price for three years. When open market-linked ATF prices dropped below this fixed threshold, carriers found the arrangement less appealing and stayed away from the scheme.
