Government Allocates ₹10,000 Crore to Stabilize Aviation Fuel Prices Amid Global Tensions

In a significant move to support the aviation sector, the Indian government has approved a one-time budgetary assistance of ₹10,000 crore for oil marketing companies. This financial aid aims to stabilize aviation turbine fuel prices, which have surged due to the ongoing conflict in West Asia and airspace restrictions imposed by Pakistan. The interest-free support is expected to alleviate the financial burden on airlines, ensuring smoother domestic and international operations. Read on to discover how this decision will impact the aviation industry.

By Narendra Chaudhary Jun 3, 2026, 16:02 IST

Significant Financial Support for Airlines

New Delhi: On Wednesday, the Indian government sanctioned a one-time financial aid of ₹10,000 crore aimed at oil marketing firms to stabilize the prices of aviation turbine fuel (ATF) for both domestic and international airline operations. This decision comes in response to the rising fuel costs exacerbated by the ongoing conflict in West Asia.

During the announcement, Information and Broadcasting Minister Ashwini Vaishnaw highlighted that this financial assistance is crucial for airlines, particularly given the recent surge in ATF prices and the restrictions imposed by Pakistan on Indian air traffic.

The ₹10,000 crore will be provided as an interest-free loan to oil marketing companies to help mitigate the impact of fluctuating fuel prices.