Aviation Turbine Fuel Price Stabilisation Scheme
The government has approved a ₹10,000 crore support scheme to cap aviation turbine fuel (ATF) prices, aimed at protecting domestic airlines from rising global crude prices due to the West Asia crisis.
Key Features of the Scheme
- State-run oil companies will sell jet fuel at a fixed rate of ₹115 per litre for both domestic and international flights.
- Current prices are ₹105 and ₹110 per litre for domestic and international flights from Delhi.
- The scheme will provide interest-free advances to refiners to cover losses from selling below market rates.
- The government will compensate oil marketing companies (OMCs) when import parity prices exceed the benchmark.
- The program is set for a 36-month duration with annual reviews.
- Proceeds are to be returned to the Consolidated Fund of India once global fuel prices moderate.
Benefits
- Avoids disruption of airline operations and shields passengers from fare hikes.
- Helps airlines maintain affordable ticket pricing while protecting state-owned oil companies from losses.
- Fuel is a significant cost for Indian carriers, making up nearly 40% of operating expenses.
Other Government Decisions
National Highway Projects
The union cabinet approved four highway projects with a total expenditure of ₹24,249 crore to improve connectivity and boost economic activity.
- Includes a coastal highway project in Odisha costing ₹8,300 crore.
- Two NH projects in Madhya Pradesh and highway widening projects in Telangana and Bihar.
Vehicle Replacement Scheme
Aimed at reducing air pollution in the Delhi-NCR region by incentivizing the replacement of older vehicles with those meeting BS-VI or stricter emission norms, including electric vehicles (EVs).
