India will provide 100 billion rupees ($1 billion) to support oil retailers for capping jet fuel prices and shield local airlines from mounting cost pressures.
The government has capped jet fuel price at 75.6 rupees a liter for domestic airlines. That’s lower than the 104.9 rupees per liter charged at New Delhi airport currently. The price limit will provide relief to airlines but could have aggravated refiners’ losses.
The fund will be used to reimburse state-owned refiners for losses from the sale of jet fuel below market rates, which will help stabilize prices for carriers, prevent disruptions in operations and ...