The money will be used to compensate state refiners for heavy losses from selling fuel in the price-capped domestic market.

While ATF price has been capped for domestic operations, Indian carriers continue to purchase ATF for international operations at Import Parity Prices (IPP). | India News

The government has sanctioned a Rs 10,000-crore fund to stabilise aviation fuel prices, following a sharp rise from Rs 60.5 to Rs 142 per litre due to Middle East tensions.

Cabinet approves ₹10,000 crore fund to stabilize aviation fuel prices, aiding Indian airlines amid escalating costs and global volatility.