Amidst the ongoing war and tension in West Asia (Middle East), the Central Government has taken a very big and historic decision to save the country’s aviation sector from the crisis. During the Cabinet meeting chaired by Prime Minister Narendra Modi, a ‘Jet Fuel Price Stabilization Fund’ of ₹10,000 crore was approved to control aviation fuel prices. Union Information and Broadcasting Minister Ashwini Vaishnav officially announced this big decision today.
Why was this fund needed? Prices increased 2.5 times in just two months
Briefing the media about the Cabinet decisions, Union Minister Ashwini Vaishnav said that due to the ongoing military conflict in the Middle East, crude oil prices are skyrocketing in the international market. This has had a direct impact on aviation fuel – especially ATF (Aviation Turbine Fuel).
Price in March 2026:** ₹60.5 per liter
Price in May 2026:** ₹142 per liter (a huge increase of almost 2.5 times in just two months)
Since aviation fuel (ATF) constitutes about 40 percent of the total operating expenses of any airline, this uncontrolled increase in prices has caused huge losses to Indian airlines and oil marketing companies (OMCs). Many companies were forced to reduce their flights.
Government sets a limit: prices will not exceed ₹75.6
To save domestic airlines from this heavy financial burden, the Central Government has provided an important safety net. The government has capped the price of aviation fuel for domestic flights at ₹75.6 per liter (fixed a ceiling).
This means that if market fuel prices go above this limit, the government will use a fund of ₹10,000 crore to stabilize prices, thereby putting no additional financial burden on the airlines.
What will be the benefit to the general public and airlines from this big decision?
According to Union Minister Ashwini Vaishnav, this initiative of the government will have many important benefits:
**Flight ticket prices will not increase:** Despite rising fuel prices across the world, airline companies will no longer be able to arbitrarily increase airfares. As a result, this will not put any additional financial burden on the pockets of common air passengers. **There will be no disruption in flight services:** Airline operations will continue to operate smoothly, and the risk of flight cancellations or curtailments due to increased operating costs will be avoided.
**Strengthening the Indian aviation sector:** This fund will provide stability to Indian scheduled airlines even in times of global economic uncertainty.
