Union Cabinet Approves ₹10,000 Crore Fund to Stabilize Jet Fuel Prices
On June 3, 2026, the Union Cabinet approved a ₹10,000-crore Jet Fuel Price Stabilisation Fund. Designed to shield domestic airlines from extreme global oil price volatility, this fiscal buffer aims to normalize operating costs during sharp spikes in Aviation Turbine Fuel (ATF) pricing. Cabinet Approves Rs 10,000 Cabinet Approves Rs 10,000-Crore Jet Fuel Price Stabilisation Fund
With fuel representing roughly 40% of an airline's total operational expenses, volatile global crude prices frequently destabilize the sector. The government's new ₹10,000-crore fund functions as a fiscal shock absorber to mitigate these external market risks. By providing targeted price-capping or subsidies, the move protects airlines from sudden fiscal distress, ensuring consistent regional connectivity under the UDAN scheme and broader civil aviation infrastructure goals.
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