Blitz Bureau
NEW DELHI: Amid the evolving situation in West Asia, the Centre on June 5 assured that all refineries in the country are operating at high capacity with adequate crude inventories, while sufficient stocks of petrol, diesel.
In a related development, the Civil Aviation Ministry announced that the Union Cabinet has approved a one-time budgetary support mechanism of up to Rs 10,000 crore to provide ATF price stabilisation support to scheduled Indian airlines.
The initiative has been introduced in view of the extraordinary volatility in global fuel prices triggered by the ongoing West Asia crisis.
Officials said the mechanism is designed as a temporary and self-correcting arrangement under which the government will provide an interest-free advance to oil marketing companies, enabling them to supply ATF to airlines at predetermined and stable prices for both domestic and international operations.
When international ATF prices exceed the benchmark level, the corpus will compensate oil marketing companies for the difference, while any price moderation will lead to recovery of funds and their return to the Consolidated Fund of India through a transparent true-up process.
The government emphasised that the arrangement is not a subsidy but a stabilisation mechanism intended to smooth extreme price fluctuations in global fuel markets.
Since ATF forms a major component of airline operating costs, the measure is expected to provide pricing predictability and help airlines manage operations more efficiently during a period of geopolitical uncertainty.
