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Jet Fuel Prices Nearly Double, Regional Airlines Urge Govt to Revive Scrapped Fund
Sentiment: NeutralHigh Priority
What Happened?
Rising aviation turbine fuel prices are prompting Indian regional airlines to call on the government to reinstate a withdrawn price stabilization fund. High fuel costs are making additional flights financially unviable.
Key points
- ATF prices in India rose from around Rs 105 per litre in March to nearly Rs 207 in April.
- Star Air reduced its operations from 68 flights in summer to 52 in winter due to high fuel costs.
- The Union Cabinet approved a one-time budgetary support of up to Rs 10,000 crore for oil marketing companies in June 2026.
- The price stabilization fund was discontinued a month after its introduction due to lack of participation.
- Regional airlines account for only about 3% of India's ATF consumption but serve 30-35% of unique routes.
Key insights
- Reviving the price stabilization fund could help stabilize operations for regional airlines facing high fuel costs.
- The government's support may encourage more airlines to participate in the scheme if conditions are favorable.
- Regional airlines play a crucial role in maintaining connectivity on routes that larger carriers may avoid.
Why it matters
The rising fuel prices could significantly impact the operational viability of regional airlines, affecting connectivity in underserved areas.
Tags
Entities
Star Air· CompanyAir India· CompanyIndiGo· CompanyCivil Aviation Ministry· GovernmentUnion Cabinet· GovernmentIndia· Country
Source
India Today
