The Indian Cabinet has approved a one-time budgetary support allocation of INR100 billion ($1 billion) for oil marketing companies to provide aviation fuel price stability support to domestic scheduled airlines for both their domestic and international operations.
According to a Bloomberg report, H.E. Ashwini Vaishnaw, Union Minister for Railways, Information & Broadcasting, Electronics & Information Technology, Republic of India, stated that the aviation turbine fuel price has been capped by the government at INR75.6 per litre for domestic flights.
This measure comes amid escalating concerns over a weak monsoon season that threatens agricultural yields, alongside recent surges in fuel prices.Â
Read more: Indian Railways aims for net zero carbon emissions by 2030
The Department of Economic Affairs clarified in its monthly economic review for May that a combination of emerging factors necessitates sustained policy vigilance.
Key variables include rising global energy prices, the depreciation of the rupee, escalating primary production costs, and the potential for below-normal monsoon precipitation.
The Ministry further indicated that the economy continues to demonstrate cautious resilience, supported by domestic macroeconomic indicators that remain largely intact.
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