India's government approved a $1.2 billion fund to stabilize Aviation Turbine Fuel (ATF) prices for airlines, shielding them from Middle East conflict-driven surges. The fund aims to prevent fare spikes, protect jobs, and maintain connectivity.
India's public sector oil companies have reduced Aviation Turbine Fuel (ATF) prices for international flights by nearly 27%, while increasing commercial LPG cylinder prices by Rs 42. ATF for international airlines now costs $1,103 per kilolitre.
State-run fuel retailers will not receive government financial backing for losses incurred from selling petrol, diesel, and aviation turbine fuel below cost. Despite rising crude oil prices, the government has opted to shield consumers by not revising retail prices for these fuels, focusing instead on price adjustments for bulk diesel and commercial LPG.
Indian government raises ATF prices for international airlines by 5% to USD 1,511.86 per kilolitre in Delhi. This is the second straight monthly rise driven by global energy crisis, though domestic airline rates remain unchanged following a 25% hike on April 1.
India's airline industry faces existential threat according to Federation of Indian Airlines, which represents IndiGo, Air India and SpiceJet. The carriers have formally requested the Civil Aviation Ministry restore pandemic-era cost caps on aviation turbine fuel and reduce or defer taxes. Speculation is growing that Prime Minister Narendra Modi's administration will raise fuel prices after state election voting concludes on Wednesday, though the government denied plans to raise petrol prices while declining to comment on jet fuel.
The Indian petroleum ministry has amended the Aviation Turbine Fuel (ATF) order to permit synthetic fuel blending. Meanwhile, Indian Oil Corporation officials confirmed that domestic fuel stocks remain stable despite supply chain concerns linked to Middle Eastern geopolitical tensions.
