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GOVERNMENT OF INDIA
MINISTRY OF CIVIL AVIATION
LOK SABHA
STARRED QUESTION NO. : 178
( TO BE ANSWERED ON THE 30th July 2026 )
RISING PRICES OF AVIATION TURBINE FUEL
178. SHRI JANARDAN MISHRA
SHRI SATISH KUMAR GAUTAM
Will the Minister of CIVIL AVIATION
be pleased to state:-
(a) whether the Government has taken any steps to provide relief to the airlines in view
of the rising prices of Aviation Turbine Fuel (ATF) globally and if so, the details thereof;
(b) the details of the projected financial implications of such measures on airport
operators and other concerned stakeholders; and
(c) the criteria or parameters adopted by the Government for determining the nature
and extent of relief measures to be provided to domestic airlines?
ANSWER
Minister of CIVIL AVIATION
(Shri Kinjarapu Rammohan Naidu)
(a) to (c): A Statement is laid on the Table of the House.
******STATEMENT REFERRED TO IN REPLY TO PARTS (A) TO (C) IN
RESPECT OF LOK SABHA STARRED QUESTION NO. 178 FOR REPLY
ON 30.07.2026 REGARDING 'RISING PRICES OF AVIATION TURBINE
FUEL' ASKED BY SHRI JANARDAN MISHRA AND SHRI SATISH
KUMAR GAUTAM.
(a) to (c): The Government in consultation with stakeholders has taken
several measures to support the aviation sector and help keep air travel
affordable, which include:
(i) For domestic operations, ATF prices were capped at a maximum
increase of 25% over the 1 March 2026 base price, effective from 1 April
2026 for the months of April and May 2026,
(ii) Partial deferment of airport landing and parking charges for domestic
operations at major airports along with a 25% rebate in such charges at
Airports Authority of India (AAI) airports,
(iii) Approval of ECLGS 5.0 with a total corpus of Rs. 18,100 crore,
including Rs. 5,000 crore earmarked for Indian airlines, to provide liquidity
support,
(iv) Reduction of Value Added Tax (VAT) on ATF at Delhi (from 25% to
7%) and at Maharashtra (from 18% to 7%) for 6 months.
Further, the Government has approved a one-time ATF Price Stabilisation
Fund (PSF) Scheme with a budgetary support not exceeding Rs. 10,000
crore as a contingency measure in response to the exceptional surge in
international ATF prices arising from the West Asia crisis, with the
objective of protecting domestic airlines and ensuring operational stability.
*****