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ATF Price Stabilisation Fund to Support Airlines; Helps maintain uninterrupted air connectivity across the country

Date:

Vinod Bhat

New Delhi: Amid the evolving situation in West Asia, the Government of India continues its efforts to keep citizens informed through regular updates. In this regard, a media briefing was held today at the National Media Centre, where officers from the Ministry of Petroleum and Natural Gas, Ministry of Ports, Shipping and Waterways, Ministry of External Affairs provided updates on fuel availability, maritime operations, assistance to Indian nationals in the region, and measures being undertaken to maintain stability across key sectors. Ministry of Civil Aviation has also briefed media on the ATF Price Stabilisation Fund.

ATF price stabilisation measures

Ministry of Civil Aviation has informed that the Union Cabinet has approved a one-time budgetary support mechanism of up to ₹10,000 crore to provide Aviation Turbine Fuel (ATF) price stabilisation support to Scheduled Indian Airlines. This decision has been taken in the larger public interest to protect air connectivity, ensure stability in air services and shield passengers from the impact of extraordinary volatility in global fuel prices arising from the ongoing West Asia crisis. It was informed that:

  • The approved mechanism is designed as a temporary and self-correcting arrangement. Under the scheme, the Government will provide an interest-free advance to Oil Marketing Companies, enabling them to supply ATF to participating Indian airlines at predetermined and stable prices for both domestic and international operations. Whenever international ATF prices rise above the benchmark level, the corpus will compensate OMCs for the difference.
  • Importantly, when fuel prices moderate, the differential amount will be recovered from OMCs and returned to the Consolidated Fund of India through a transparent true-up mechanism. Thus, the arrangement is intended not as a subsidy, but as a temporary stabilisation measure to smoothen the impact of exceptional fuel price volatility while ensuring full accountability, monitoring and recovery of funds.
  • ATF constitutes a major component of airline operating costs and the sharp increase in international fuel prices, coupled with longer flight paths for Indian carriers on several international routes, has placed significant pressure on airline operations. The approved mechanism will provide greater predictability in fuel costs through a fixed-price arrangement, enabling airlines to plan their operations more efficiently and continue serving passengers across domestic and international networks.
  • For passengers, the most important benefit of this decision is that it will help moderate sudden increases in airfares that often result from sharp spikes in fuel prices. By reducing the exposure of airlines to extreme fuel price fluctuations, the Government aims to minimise the pass-through of such costs to travellers and provide greater fare stability. This will particularly benefit families, students, business travellers, tourists and citizens who depend on air transport for mobility and economic opportunities.
  • The measure will also help maintain uninterrupted air connectivity across the country, including services to remote, regional, Tier-II and Tier-III cities. Continued connectivity is essential for regional development, tourism, trade, healthcare access, education and investment. It will ensure that citizens in all parts of the country continue to have reliable access to air transport services while supporting the Government’s vision of inclusive growth and balanced regional development.
  • The decision is expected to have positive effects across the wider economy by supporting employment in airlines, airports, ground handling services, maintenance and repair organisations, tourism, hospitality and logistics sectors. It will also help preserve India’s domestic and international connectivity, strengthen integration with global markets, and ensure optimal utilisation of airport infrastructure developed across the country, including airports operationalised under the UDAN scheme.
  • The Government remains committed to safeguarding the interests of passengers, maintaining affordable and reliable air services, and supporting the long-term growth and resilience of India’s civil aviation sector during this period of global uncertainty.

 

Energy Supply and Fuel Availability

The Ministry of Petroleum and Natural Gas provided an update on the current fuel supply situation, outlining measures being taken to ensure uninterrupted availability of petroleum products and LPG in the context of the evolving situation in West Asia. It was noted that:

Public Advisory and Citizen Awareness

  • Govt. is making all efforts to ensure availability of Petrol, Diesel and LPG. Citizens are advised to avoid panic purchase of Petrol, Diesel and booking of LPG.
  • Beware of rumours and rely on official sources for correct information.
  • Citizens are requested to use alternate fuels like PNG, induction/electric cooktops, etc.
  • Bulk and industrial consumers are requested to procure diesel from authorized procurement channels.
  • In the current situation, all citizens are requested to make necessary efforts to conserve energy in their daily usage.

Government Preparedness and Supply Management Measures

  • Despite the ongoing geopolitical situation, the Government has ensured that 100% supply is being made to Domestic LPG, Domestic PNG and CNG (Transport).
  • For commercial LPG, priority has been given to hospitals and educational institutions. Priority has also been given to pharma, steel, automobile, seed, agriculture, etc. Supply of 5 Kg FTL to migrant labour has also been doubled based on avg. daily supply on 2nd and 3rd March 2026.
  • The Government has already implemented several rationalisation measures on both the supply and demand side, including enhancing refinery production, increasing the booking interval from 21 to 25 days in urban areas and up to 45 days in rural areas, and prioritising sectors for supply.

Coordinated Efforts with States/UTs and Institutional Mechanisms

  • State Governments are empowered under the Essential Commodities Act, 1955 and LPG Control Order, 2000 to monitor supply and act against hoarding and black marketing
  • Govt. of States/UTs have to play a primary role in monitoring and regulating supply situation of essential commodities including Petrol, Diesel and LPG. Govt. of India has reiterated the same via multiple letters and VCs to all States/UTs.

 

  • Government of India vide multiple letters and VCs have stressed the need for proactive public communication to reassure citizens regarding adequate fuel availability.
  • Govt. of India vide letter dated 26.05.2026 has requested Chief Secretaries of all States/UTs to issue appropriate directions to State/district authorities to monitor and review district-wise HSD/MS offtake pattern, intensify inspections and enforcement activities in vulnerable areas and along major transportation/industrial corridors to prevent unauthorized procurement of HSD through retail outlets by industrial and commercial consumers, and initiate prompt penal action against violators.

Enforcement and Monitoring Actions

  • Enforcement actions by States/UTs continue across the country to curb hoarding and black marketing of Petrol, Diesel and LPG.
  • LPG-related enforcement — To check hoarding and black marketing of LPG cylinders, 4 FIRs have been registered during the last 3 days.
  • Petrol and Diesel-related enforcement — In the last 3 days, more than 1,880 raids were conducted wherein more than 2,900 litres of Petrol and 6,350 litres of Diesel were seized. Further, 18 FIRs were registered and 13 persons were arrested across the country.
  • Surprise inspections by PSU OMCs officials are also continuing:
  • LPG distributorships — In the last 3 days, inspections at about 680 LPG distributorships have been conducted. Penalties have been imposed on 6 LPG distributorships, and 2 LPG distributorships have been put under suspension.
  • Retail Outlets — In the last 3 days, inspections at about 2,500 retail outlets have been conducted. Penalties have been imposed on 19 Retail Outlets, and 457 Retail outlets have been put under suspension.

LPG Supply

Domestic LPG Supply Status:

  • LPG Supply continues to be affected by the prevailing situation.
  • Supply of LPG to domestic households has been prioritised.
  • No dry-outs have been reported at LPG distributorships.
  • Online LPG cylinder bookings have increased to about 99% on industry basis yesterday.
  • Delivery Authentication Code (DAC) based deliveries have been increased to about 96% to prevent diversion at the distributor level. DAC is received on the registered mobile number of the consumer.
  • In the last 3 days, about 1.43 Crore LPG cylinders were delivered against bookings of around 1.50 Crore LPG cylinders.

Commercial LPG Supply and Allocation Measures:

  • Govt of India has decided to allocate total commercial allocation to 70% of the pre-crisis level incl. 10% reform based.
  • In the last 3 days, about 1.57 Lakh — 5 Kg FTL cylinders were sold.
  • In the last 3 days, around 9,200 — 5 Kg FTL cylinders were sold through about 520 camps.
  • In the last 3 days, total of 19,372 MT of Commercial LPG has been sold.
  • In the last 3 days, about 649 MT of Auto LPG has been sold by PSU OMCs.

Natural Gas Supply and PNG Expansion Initiatives

  • Consumers have been prioritised with 100% supplies to D-PNG and CNG-Transport.
  • Supply to operating Urea Plants is currently at around 98% of their average consumption over the preceding six months.
  • Gas supply to other industrial and commercial sectors, including supplies through CGD networks, is enhanced up to 80%.
  • CGD entities have been advised to prioritize PNG connections for commercial establishments such as hotels, restaurants and canteens across all their GAs, to address concerns regarding the availability of commercial LPG.
  • Govt. of India has requested Govt. of States/UTs and Central Ministries to expedite approval of applications required for expansion of CGD network.
  • Govt. of India vide letter dated 18.03.2026 has offered all States/UTs additional 10% allocation of commercial LPG to States provided they can help in long-term transition from LPG to PNG. 22 States/UTs are receiving additional Commercial LPG allocation linked to PNG expansion reforms.
  • Govt. of India vide Gazette dated 24.03.2026 has notified the Natural Gas and Petroleum Products Distribution (Through Laying, Building, Operation and Expansion of Pipelines and Other Facilities) Order, 2026 under the Essential Commodities Act, 1955. The Order provides a streamlined and time-bound framework for laying and expanding pipelines across the country, addressing delays in approvals and access to land, and enabling faster development of natural gas infrastructure, including in residential areas. It is expected to accelerate PNG network growth, enhance last-mile connectivity, and support the transition to cleaner fuels, thereby strengthening energy security and advancing India’s gas-based economy.
  • PNGRB has directed CGD entities to expedite D-PNG connections. The National PNG Drive 2.0 (01.01.2026–31.03.2026) has now been extended till 30.06.2026 to sustain momentum in PNG expansion.
  • To encourage a cleaner, more secure and self-reliant energy future, Govt. of India has developed a model draft State CBG Policy intended to serve as a comprehensive flexible guiding framework to enable States to create their own investor-friendly and implementation-oriented ecosystem for CBG development. States opting for this will be prioritized for the next tranche of additional allocation of commercial LPG.
  • Since March 2026, about 8.82 Lakh PNG connections have been gasified and infrastructure has been created for additional 2.98 Lakh connections, taking the total to 11.80 Lakh connections. Further, about 8.98 Lakh customers have been registered for new connections.
  • Till 03.06.2026, more than 80,400 PNG consumers have surrendered their LPG connections via MYPNGD.in website.

Crude Position and Refinery Operations

  • All refineries are operating at high capacity with adequate crude inventories, while sufficient stocks of petrol and diesel are being maintained.
  • Domestic LPG production from refineries has been increased to support domestic consumption.
  • An inter-ministerial Joint Working Group (JWG) has been set up to ensure availability of petrochemical feedstock supply for the domestic market. Govt. of India vide order dated 01.04.2026 has permitted Oil Refinery companies including Petrochemical Complexes to make certain minimum quantities of C3 & C4 streams available for critical sectors as determined by Centre for High Technology (CHT).
  • Based on requests received from the Department of Pharmaceuticals, Department of Chemicals & Petro Chemicals (DCPC), Dept. for Promotion of Industry and Internal Trade (DPIIT), provision for C3-C4 molecules of 1120 MT/day, from LPG pool, has been made for Pharma, Chemical and Paint sector companies.
  • Since 01 June 2026, about 1,030 MT of C3-C4 Molecules (comprising Propylene and Butylene) and about 320 MT of Butyl Acrylate has been sold by Mumbai, Kochi, Vizag, Chennai, Mathura and Gujarat refineries to Chemical, Pharma and Paint Industry.

Retail Fuel Availability and Pricing Measures

  • All Retail outlets are operating normally across the country.
  • The Middle East crisis has led to an abnormal increase in crude prices; however, to protect consumers, the Government of India has reduced excise duty on petrol and diesel by ₹10 per litre.
  • Govt. of India vide Gazette notification dated 31.05.2026 has reduced the export levy on petrol from ₹3 per litre to ₹1.5 per litre, on diesel from ₹16.50 per litre to ₹13.50 per litre, and on ATF from ₹16 per litre to ₹9.5 per litre.
  • Unusually high sales and heavy crowding observed at Retail outlets in certain areas.

Maritime Safety and Shipping Operations

The Ministry of Ports, Shipping and Waterways provided an update on the prevailing maritime situation in the Persian Gulf, detailing measures being undertaken to ensure the safety and security of Indian vessels and crew in the region. It was stated that:

  • The Ministry of Ports, Shipping and Waterways continues to coordinate with the Ministry of External Affairs, Indian Missions, and maritime stakeholders to ensure seafarer welfare and uninterrupted maritime operations.
  • All Indian seafarers in the region are safe, and no incident involving Indian-flagged vessels or foreign vessels with Indian crew has been reported in the past 72 hours.
  • DG Shipping Control Room Update: The Control Room has handled 11,630 calls and more than 25,864 emails since activation. In the last 72 hours, a total of 444 calls and 1,034 emails have been received from seafarers, their families, and maritime stakeholders.
  • Repatriation Update: The Ministry, through the Directorate General of Shipping (DG Shipping), has facilitated the safe repatriation of more than 3,474 Indian seafarers so far, including 28 in the last 72 hours from various locations across the Gulf region.
  • Port operations across India remain normal, with no congestion reported.

 

Safety of Indian Nationals in the Region

The Ministry of External Affairs continues to closely monitor the developments in the Gulf and West Asia region, with focused efforts on ensuring safety, security and welfare of the Indian community in the region. It was informed that:

  • The Ministry of External Affairs is in constant touch with State Governments and Union Territories for sharing of information and coordination of efforts.
  • Indian Embassies and Consulates across the region are on alert and are proactively assisting the Indian community. They are operating round-the-clock helplines to provide timely assistance to Indian nationals and are in close touch with local governments.
  • Advisories are being issued including information related to local government guidelines, flight and travel situations, consular services, and the various welfare measures being undertaken for the community.
  • Indian Missions are actively engaged with the resident Indian community. They are regularly interacting with Indian community associations, organizations, professional groups, and Indian companies to address their concerns.
  • Welfare of Indian seafarers in the region is of high priority. Indian Missions are extending all assistance to them including coordination with local authorities and agencies, extending consular assistance, and assisting requests to return to India.

Status of Flights

  • The overall flight situation continues to improve with additional flights operating from the region to various destinations in India.
  • UAE: UAE airspace is open. Indian and UAE carriers are operating flights from UAE to various destinations in India.
  • Saudi Arabia and Oman: Flights are operating from various airports in Saudi Arabia and Oman to different destinations in India.
  • Qatar: Qatar airspace is partially open. Air India, Air India Express, IndiGo and Qatar Airways are operating flights from Qatar to various destinations in India.
  • Kuwait: Kuwait airspace is open. Kuwait Airways and Jazeera Airways continue to operate flights from Kuwait to various destinations in India.
  • Bahrain: Bahrain airspace is open. Air India Express, IndiGo and Gulf Air are operating flights from Bahrain to various destinations in India.
  • Iraq: Iraq airspace is open with limited flight operations to destinations in the region, which can be used for onward travel to India.
  • Iran: Iran airspace is partially open. Ministry has advised Indian nationals to avoid travelling to Iran and urged those already there to leave with the Embassy’s support. So far, Indian Embassy in Tehran has facilitated movement of 2,557 Indian nationals out of Iran through land border routes.
  • Israel: Israel airspace is open and limited flight operations have resumed to destinations in the region, which can be used for onward travel to India.

Status Update on the Attack on Kuwait International Airport

  • Yesterday, in an attack on the Kuwait International Airport, an Indian national unfortunately lost his life. The Government expresses its deepest condolences to the family of the deceased. The Indian Mission in Kuwait is in touch with the family and is coordinating closely with the local authorities. The mortal remains are expected to arrive in India tomorrow.
  • Thirteen Indian nationals have been injured in the attack and are currently undergoing treatment at various hospitals in Kuwait. The Mission is extending all assistance to the injured and is in close touch with the local authorities.

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