India has approved a $1 billion financial support package for airlines as a sharp rise in aviation fuel prices threatens the stability of the aviation sector, officials said on Wednesday.
The decision comes as geopolitical tensions linked to the Iran war disrupt global energy supplies and contribute to a surge in crude oil prices. The conflict has affected key Middle Eastern shipping routes, including the Strait of Hormuz, through which nearly one-fifth of global oil shipments normally pass. This disruption has pushed aviation turbine fuel (ATF) prices significantly higher in recent months.
According to government data, ATF prices have more than doubled since March, increasing from 60.50 rupees ($0.63) per litre to 142 rupees ($1.49) per litre in May. The sharp rise has increased operational pressure on airlines and led to concerns over rising ticket fares and declining profitability.
Under the approved package, the government will provide interest-free advances worth $1 billion to state-run oil marketing companies. These funds are intended to help stabilise ATF prices for both domestic and international carriers.
Officials said the measure is designed to ensure uninterrupted air connectivity and maintain stable aviation operations across the country.
Oil Minister Hardeep Puri said the initiative would help protect an estimated 7.7 million jobs linked to the aviation sector. He also noted that it would safeguard investments in airport infrastructure by keeping airlines financially viable during the ongoing fuel price shock.
.jpg "LPG cylinder price reduced to Tk1,885 in Bangladesh")
