India launches fixed-price aviation fuel scheme to stabilize costs
India just rolled out a fixed-price scheme for aviation fuel, aiming to protect airlines and passengers from wild price swings.
Now, airlines that join the plan can buy fuel at set rates: ₹86.32 a liter for domestic flights and ₹104.49 a liter for international ones.
With all fees included, the price comes to about ₹115 a liter in Delhi, making costs more predictable.
Airlines skipping scheme pay roughly ₹142/liter
Airlines that skip the scheme will pay much higher rates, roughly ₹142 a liter.
This move is part of a bigger government push (₹10,000 crore program) to support oil companies and help keep flight prices steady for up to three years.
Since fuel can make up 60% of an airline's expenses during tough times, this new system should help keep flights accessible (and fares from shooting up) until global prices calm down again.