Government Launches ATF Stabilisation Fund #cabinetdecision #ashwinivaishnav

The first decision is the ATF Price Stabilization Fund. We all know that a major challenge has emerged due to the West Asia crisis. The price of Aviation Turbine Fuel (ATF) has risen sharply. If we look at the figures, the price of ATF was ₹60 per litre in March, which increased to ₹142 per litre in May 2026. Now, the government wanted to ensure that this increase does not adversely affect domestic passengers. Today, air travel has become an important mode of transportation even for the middle class, and a large number of middle-class citizens travel by flights. The government did not want this burden to fall heavily on their pockets. Therefore, it had capped ATF prices at ₹75.6 per litre for domestic operations. While this helped stabilize domestic operations, as the crisis continued for a prolonged period, it began to have a significant negative impact on the oil marketing companies (OMCs). The challenge, therefore, was to find a win-win-win solution — a win for the airlines, a win for the OMCs, and a win for the citizens. A great deal of effort went into developing such a solution. There were extensive discussions and consultations with the industry, the banking sector, and the OMCs. Finally, the solution that has emerged is the ATF Price Stabilization Fund. Under this initiative, a self-sustaining revolving fund has been created. Through this self-sustaining revolving fund, participating airline carriers will be able to access a stable ATF price during the current crisis period. At the same time, a mechanism has also been established for reimbursement and repayment once the crisis comes to an end. All the details of this scheme will be shared separately by the Ministry of Civil Aviation through detailed guidelines: Union Minister Ashwini Vaishnaw

#AviationSector #AshwiniVaishnaw #AirTravel #MiddleClass #FuelPrices #AviationFuel #ATFPriceStabilizationFund #Airlines #OMCs #EconomicRelief #indiarising

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