Extracted Data Points

  • One-time budgetary support not exceeding Rs. 10,000 crore approved for Oil Marketing Companies (OMCs)
  • Support provided as interest-free advances through Ministry of Petroleum and Natural Gas Demands for Grants
  • Scheme designed to provide ATF price stabilization support to Scheduled Indian Airlines for domestic and international operations
  • Mechanism compensates OMCs for losses when Import Parity Price exceeds benchmark price
  • Recovery mechanism: Differential amount recovered from OMCs when international ATF prices moderate, returned to Consolidated Fund of India
  • Scheme available to all willing Scheduled Indian carriers
  • Fixed-price arrangement adopted for domestic and international operations
  • Participating airlines must procure ATF only from OMCs for up to three years, subject to annual review
  • Monitoring Committee includes representatives from Ministry of Civil Aviation, Ministry of Petroleum & Natural Gas, and Department of Expenditure
  • All claims and recoveries subject to audit
  • Support period: Thirty-six months with provision for annual review or until advance amount fully recovered
  • Extension beyond thirty-six months possible with Competent Authority approval if corpus not fully trued up
  • ATF price surge: From Rs. 60.50/litre in March 2026 to Rs. 142/litre in May 2026 (2.5 times increase)
  • ATF accounts for nearly 40% of airline operating costs, can reach up to 60% during extreme volatility
  • Pakistan airspace closure for Indian carriers resulted in longer flight paths to Europe, North America and Central Asia
  • International demand has declined with airlines reducing or suspending services on several international routes