New Delhi, 03 June (H.S.): Amid the ongoing crisis in West Asia and a surge in global fuel prices, the Union Cabinet has approved a ₹10,000-crore Aviation Turbine Fuel (ATF) Price Stabilisation Fund for Indian airlines. The primary objective of the measure is to protect both aviation companies and passengers from severe fuel price shocks.

Addressing a press conference here on Wednesday, Union Minister for Information and Broadcasting Ashwini Vaishnaw said that the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a one-time budgetary support package of more than ₹10,000 crore for Oil Marketing Companies (OMCs).

He stated that the financial assistance is intended to enable OMCs to help maintain stable Aviation Turbine Fuel prices for scheduled Indian airlines operating both domestic and international services.

Vaishnaw explained that the budgetary support will be provided to Oil Marketing Companies as an interest-free advance through the Ministry of Petroleum and Natural Gas under its grant allocations.

He further said that the assistance is being extended to OMCs to help them stabilize ATF prices for airlines during the current period of extreme fuel price volatility triggered by the ongoing crisis in West Asia.

According to the minister, the initiative is aimed at cushioning the aviation sector from sharp fluctuations in fuel costs and ensuring greater operational stability for airlines amid uncertain global energy market conditions.

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Hindusthan Samachar / Jun Sarkar