Indian Cabinet approves USD1bn fuel price stabilisation support for airlines
India's Ministry of Civil Aviation (MoCA) announced (03-Jun-2026) Cabinet approved "a one-time budgetary support of up to [INR100 billion (USD1.04 billion)] for Oil Marketing Companies (OMCs) to provide Aviation Turbine Fuel (ATF) price stabilization support to Scheduled Indian Airlines for their domestic and international operations". MoCA stated: "The decision comes in response to the exceptional fuel price volatility arising out of the ongoing West Asia crisis, which has posed significant challenges for airlines across the world", adding: "The approved mechanism seeks to provide enhanced stability and predictability in ATF pricing for Indian carriers while ensuring continuity of air services and protecting passengers from the impact of sudden fuel price shocks". [more - original PR] [more - original PR - II]
Background ✨
India's Ministry of Petroleum and Natural Gas, in consultation with the Ministry of Civil Aviation, implemented a partial and staggered 25% ATF increase for domestic airlines after an over 100% rise was anticipated from 01-Apr-2026 amid global energy disruptions and the closure of the Strait of Hormuz, while foreign routes faced the full increase1. Air India subsequently raised fuel surcharges effective 08-Apr-2026 following the 25% ATF increase2.