India on Wednesday approved a fuel stabilization package worth Rs 100 billion ($1.05 billion) aimed at helping airlines cope with soaring jet fuel prices linked to disruptions caused by the ongoing Iran conflict.
The Indian government said the financial support would be extended as interest-free advances to state-run oil marketing companies, enabling them to absorb losses from supplying aviation fuel to airlines at moderated rates.
In an official statement, the authorities said the move is intended to safeguard both domestic and international air connectivity and ensure the uninterrupted operation of air services amid growing volatility in global energy markets.
The decision comes as airlines worldwide face mounting pressure from rising aviation fuel prices, which can account for up to 40 percent of total operating expenses.
Industry analysts say the fuel stabilization measure is expected to provide temporary relief to carriers already grappling with high operational costs and regional geopolitical tensions affecting global oil supplies.
