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ATF Price Hiked to ₹115 Per Litre as Government Launches Fuel Stability Plan for Airlines
The government has introduced a new aviation fuel scheme for domestic airlines. Under this scheme, ATF prices have been increased by 10%, from ₹104,927 to ₹115 per liter. However, airlines have been given the optional option to purchase fuel at the same fixed rate for the next three years, providing relief.
With changing prices in the global crude oil prices, a new Aviation Turbine Fuel (ATF) scheme was introduced for domestic flights. According to the government, it has increased the prices of ATF by 10% on Tuesday, but airlines will have the option of keeping fuel prices at constant levels for the coming three years.
In light of the hike, the cost of ATF will rise from ₹104,927 to ₹115 per liter. It will be at this cost for three years for those domestic airlines joining this scheme. Those who opt out will have to pay the market cost, the same cost that the international airlines have been paying. It amounts to ₹142 per liter now.
Along with the hike, the government also introduced an optional scheme to offer relief to domestic airlines. According to the scheme, domestic airlines opting for the scheme can maintain stable fuel prices for three years. These airlines will not have to face the burden of rising costs during the period and will have to pay a constant ₹115 per liter. This will make it easier for airlines to budget their operating costs in the long term.
