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Centre weighs revival of Rs 10,000 crore jet fuel fund
The Indian Express··6d ago
A senior official said on October 6, 2026 that India could revive the Rs 10,000-crore jet fuel Price Stabilisation Fund after recent ATF rises. The scheme announced in June lapsed when no airline joined as prices eased. On October 1, jet fuel was hiked by about Rs 16 per litre to Rs 137 per litre.
Prism
What It Means For You
- Under the lapsed scheme, OMCs would sell ATF at a fixed price to participating Indian airlines.
- The fixed Delhi price under the June plan was Rs 115 per litre, varying by state taxes.
- IndiGo has raised the fuel surcharge on tickets after six months, the report said.
What's Happening
- Civil Aviation Minister K Rammohan Naidu said talks with airlines and OMCs are under way.
- The Federation of International Airlines urged a cost-plus pricing model for jet fuel.
- FIA said jet fuel now accounts for 55-60 percent of airline operating expenses.
Why the June Scheme Lapsed
- Airlines had to commit exclusive OMC fuel purchases for up to three years to join.
- Prices fell below the fixed level after hopes of a West Asia truce, so no carrier signed up.
- FIA warned that without relief, airlines could withdraw from unsustainable routes.
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