Business
Civil Aviation Sector Gets Temporary Relief from Fuel Price Volatility
The Union Government has approved a one-time budgetary support package of ₹10,000 crore to stabilize Aviation Turbine Fuel (ATF) prices and protect air connectivity from the impact of volatility triggered by the West Asia conflict. Officials emphasized that the measure is a temporary stabilization mechanism rather than a subsidy.
The Government of India has announced a one-time budgetary support package of ₹10,000 crore to cushion the civil aviation sector against sharp fluctuations in Aviation Turbine Fuel (ATF) prices arising from the ongoing geopolitical tensions in West Asia.
Addressing an inter-ministerial briefing in New Delhi, Rohit Raj said the decision was taken in the larger public interest to protect air connectivity, maintain stability in aviation services, and shield passengers from extraordinary fuel price volatility.
Raj clarified that the arrangement is not a subsidy, but a temporary stabilization mechanism designed to smooth the impact of exceptional fuel price fluctuations while ensuring accountability, monitoring, and eventual recovery of funds. He noted that reducing airlines’ exposure to sudden fuel cost spikes would help minimize fare increases for travelers and ensure uninterrupted air services across the country.
He emphasized that reliable air connectivity is crucial for regional development, tourism, trade, healthcare, education, and investment, and reiterated the government’s commitment to maintaining affordable and dependable aviation services.
Meanwhile, Sujata Sharma assured that India has adequate stocks of petrol, diesel, LPG, and natural gas. She stated that no shortages have been reported at LPG distributorships across the country.
According to Sharma, online LPG bookings have reached 99 percent, while OTP-based deliveries now account for over 96 percent of all deliveries. She added that enforcement agencies continue to monitor markets to prevent black marketing and hoarding of petroleum products.
The ministry also highlighted strong distribution figures:
- Around 1.43 crore domestic LPG cylinders delivered in the last three days.
- Approximately 19,000 tonnes of commercial LPG cylinders sold during the same period.
- More than 1.57 lakh 5-kg Free Trade LPG (FTL) cylinders sold nationwide.
- Over 8 lakh PNG (Piped Natural Gas) connections activated since March, with infrastructure created for nearly 2.98 lakh additional connections.
On the international front, Asim R. Mahajan said India is closely monitoring developments in the Gulf and West Asia region. He advised Indian citizens to avoid travel to Iran due to the evolving security situation.
Mahajan noted that Indian embassies and consulates in the region continue to operate round-the-clock helplines and are actively assisting Indian nationals. He also said flight operations between the region and India are gradually improving, with additional services being deployed to facilitate travel.
The government said it remains committed to ensuring energy security, maintaining essential supplies, protecting consumers, and supporting critical sectors such as civil aviation during the ongoing geopolitical uncertainty.