With an aim to provide cushion against challenges posed by West Asia conflict, the government of India has cleared a one-time budgetary support of Rs 10,000 crore for oil marketing companies (OMCs) to provide aviation turbine fuel (ATF) price stabilization to Indian airlines for domestic and international operations. Union Minister of Information and Broadcasting (I&B) Ashwini Vaishnaw has said that the budgetary support will help airlines in the backdrop of a rise in prices of ATF due to the conflict and closure of airspace by Pakistan for Indian airlines.
The corpus will compensate OMCs for losses arising from elevated international ATF prices whenever the prevailing Import Parity Price exceeds the benchmark price determined under the approved mechanism. The differential amount shall be recovered from OMCs when international ATF prices get moderated and the amount shall be returned to the Consolidated Fund of India. The arrangement shall continue until the entire support amount is fully recovered and settled.
Moreover, the mechanism reduces airlines’ exposure to sudden fuel price spikes by providing greater predictability in fuel costs by adopting a fixed-price arrangement for domestic and international operations. The measure will also help protect and sustain domestic and international air connectivity, ensuring continuity of air services. Besides, the arrangement will support continued air connectivity to remote, regional, Tier-II and Tier-III cities, promoting balanced regional development and inclusive growth.
MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.
To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.
MoneyWorks4Me ensures this through: