Flight Ticket News: Government oil companies have increased the price of aviation turbine fuel by about 10 percent from Tuesday, June 9. The price of ATF in Delhi has increased from Rs 1 lakh 4 thousand 927 per kilo liter to Rs 1 lakh 15 thousand 927 per kilo liter.

Recently, the government has also implemented a price stabilization scheme, which promises to protect domestic airlines from fluctuations in global oil prices for the next three years, but some important questions are also being raised regarding this scheme.

earthquake in oil market due to west asia crisis

Due to the West Asia crisis, the price of ATF in the international market jumped from Rs 60.50 per liter in March 2026 to Rs 142 per liter in May 2026, i.e. almost two and a half times.

ATF accounts for about 40 percent of an airline’s total operating costs and can go up to 60 percent during periods of extreme volatility. This shock had badly shaken the budget of all the airlines like Indigo, Air India and Akasa.

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What is Price Stabilization Scheme?

The Central Government has created an ATF Price Stabilization Fund of Rs 10 thousand crores. Under this, interest-free advance funds will be given to government oil companies so that they can provide fuel to domestic airlines at a stable rate. Airlines participating in the scheme will be able to buy fuel from oil companies at fixed rates for a maximum of three years.

The FOB benchmark price has been fixed at Rs 86.32 per litre. After adding airport charges, oil company margin and tax, the actual rate in Delhi becomes Rs 115 per liter. Whenever the price in the international market goes above this benchmark, the government will compensate the oil companies for that loss. The government will get that amount back when prices come down.

Relief to airlines, passengers wait

Air India, Indigo and Akasa have welcomed this step. Airlines say this will help them in cost planning, but the question that matters most is will air tickets be cheaper? The answer to this is currently no.

Experts say that this scheme will do more to prevent future sudden increase in tickets than making tickets cheaper. This means that passengers who are buying expensive tickets today should not expect immediate relief.

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Is the scheme voluntary? this is the biggest question

The biggest weakness of this entire scheme is that it is completely voluntary. Airlines which will not participate in this will continue to buy fuel at the market rate i.e. around Rs 142 per litre, the same rate that is applicable to international airlines.

If any big airline decides to stay out of this scheme, then the cost burden will remain on it and its tickets may remain expensive. On the other hand, if international prices fall, airlines outside the scheme will benefit, while airlines included in the scheme will remain stuck at the fixed rate of Rs 115.

How much burden on OMCs?

It is also worth keeping in mind that government oil companies are already under pressure. Apart from ATF, they are also burdened with under recovery in petrol, diesel and LPG. This advance fund of Rs 10,000 crore will provide immediate relief to OMCs, but it will work only as long as global prices remain high. If the crisis continues for a long time, it remains to be seen whether this corpus will be sufficient or not.

The government says that this step will maintain air connectivity in the country and protect the jobs of about 77 lakh people who are associated with the aviation ecosystem, but the real test will be when the airlines decide whether they join this scheme or not.