Cabinet approves Price Stabilization Fund for Scheduled Indian Airlines towards ATF pricing

Why in News?

The Union Cabinet has approved one-time budgetary support of up to ₹10,000 crore for Oil Marketing Companies (OMCs) to provide Aviation Turbine Fuel (ATF) price stabilisation support to scheduled Indian airlines amid fuel price volatility caused by the West Asia crisis.

• The assistance will be provided as interest-free advances through the Ministry of Petroleum and Natural Gas.
• The objective is to ensure stable ATF prices for domestic and international airline operations.

About Aviation Turbine Fuel (ATF)

• ATF is a petroleum-based fuel used in aircraft powered by:
  • Jet engines
  • Turboprop engines
  • Helicopter gas-turbine engines
• It is a kerosene-based hydrocarbon blend, not a single chemical compound.
• Typically consists of hydrocarbons ranging from C₁₀H₂₀ to C₁₂H₂₄.

Why Kerosene-Based Fuel is Preferred

• Lower volatility than gasoline.
• Reduced fire risk during handling.
• Better crash safety.
• High energy density.
• Stable combustion at high altitudes.
• Performs effectively in extremely cold conditions.

Types of Jet Fuel

Fuel Type	Usage	Freezing Point
Jet A	Mainly United States	–40°C
Jet A-1	Most countries, including India	–47°C

The lower freezing point of Jet A-1 makes it more suitable for long-haul international flights operating at very high altitudes and low temperature.

Sources: PIB & Chevron