Punjab Newsline | New Delhi
Amid rising fuel prices triggered by the ongoing crisis in West Asia, the Central Government has approved a ₹10,000-crore Aviation Turbine Fuel (ATF) support fund to ease pressure on the aviation sector. The decision was taken during a Cabinet meeting chaired by Prime Minister Narendra Modi on June 3.
The fund will provide financial support to Oil Marketing Companies (OMCs) to help stabilize ATF prices and protect them from losses caused by sharp fluctuations in aviation fuel costs. The ATF Price Stabilisation Support scheme will remain in force for 36 months, subject to annual review and recovery of the advance amount.
According to an official statement, the assistance will be provided as an interest-free advance through budgetary support under the Ministry of Petroleum and Natural Gas. The move aims to ensure that OMCs are not adversely affected by supplying fuel to airlines during periods of high and volatile ATF prices.
Under the special arrangement, participating airlines will be required to purchase ATF exclusively from OMCs for a maximum period of three years. The scheme will be reviewed annually and may end earlier if the entire support amount is recovered and adjusted.
The government believes the initiative will help airlines manage fuel costs more effectively, improve operational planning, and strengthen financial stability at a time when global energy markets remain uncertain due to geopolitical tensions in the region.
