Extracted Data Points

  • The Union Cabinet approved a one-time budgetary support of up to ₹10,000 crore for Oil Marketing Companies (OMCs).
  • The support is for providing Aviation Turbine Fuel (ATF) price stabilization to Scheduled Indian Airlines.
  • The support covers both domestic and international operations of airlines.
  • The decision is in response to exceptional fuel price volatility arising from the ongoing West Asia crisis.
  • The mechanism aims to provide enhanced stability and predictability in ATF pricing.
  • ATF constitutes nearly 40% of airline operating costs under normal circumstances.
  • ATF can account for up to 60% of total operating expenditure during extreme fuel price volatility.
  • Previous support under the Emergency Credit Line Guarantee Scheme (ECLGS) earmarked nearly ₹5,000 crore for airlines.
  • For domestic operations, the increase in ATF base prices was moderated and capped at 25%.
  • Landing and parking charges for domestic carriers were reduced by 25%.
  • VAT on ATF was reduced to 7% in Delhi and Maharashtra, which account for 75-80% of the country's ATF uplift.
  • The ATF Price Stabilization Support Mechanism will remain operational for thirty-six months.
  • There is a provision for annual review.
  • The mechanism will continue until the advance amount is fully recovered and settled, whichever is earlier.
  • A Monitoring Committee will oversee implementation, claim verification, reconciliation, and settlement.
  • The committee comprises representatives from the Ministry of Civil Aviation, Ministry of Petroleum and Natural Gas, and Department of Expenditure.
  • The Ministry of Civil Aviation has been monitoring the situation and engaging with airlines and stakeholders.