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India reviews ₹10,000 crore fuel scheme amid airline apathy
7 Oct
Summary
- India may review its ₹10,000 crore aviation fuel price scheme.
- Airlines show limited interest in the scheme due to price conditions.
- The scheme aimed to provide a fixed fuel price for three years.
The Indian government is poised to re-evaluate its ₹10,000 crore aviation turbine fuel (ATF) price stabilization scheme. This initiative, approved in June 2026, was designed to shield airlines and oil marketing companies from sharp price hikes by offering a fixed fuel price for three years. However, the scheme has seen limited uptake from airlines.
A primary reason for the lack of airline engagement is the condition requiring them to commit to purchasing ATF at a fixed rate for the entire three-year duration. This stipulation has proven unappealing, particularly when current market-linked ATF prices are lower than the fixed rate. As a result, the government is expected to hold discussions with airlines and oil marketing companies to review the scheme's structure and potentially enhance its attractiveness.
