India launches 3‑yr jet fuel price stabilisation at ₹115/L

India’s state-run oil marketing companies have introduced a new price stabilisation scheme for aviation turbine fuel (ATF), allowing domestic airlines to lock in jet fuel prices for up to three years at a fixed rate of approximately 115 rupees per litre. This marks an increase of roughly 10% from the previous price of about 105 rupees per litre. The voluntary scheme, announced on Tuesday, June 9, 2026, is designed to shield airlines and passengers from sharp volatility in global oil markets.

Airlines that opt into the programme will pay the fixed price, insulating them from future international price spikes during the contract period. Carriers choosing not to participate will continue purchasing fuel at market-linked rates, which currently stand around 142 rupees per litre. The government has approved a 10,000-crore rupee price stabilisation mechanism to support the framework, which officials describe as a risk-management tool rather than a direct subsidy. Under this mechanism, oil marketing companies will receive interest-free advances from the government when global benchmark prices exceed a base rate of 86.32 rupees per litre, with the differential to be recovered when...