New Delhi, June 3 -- The Union Cabinet has capped the rate for Aviation Turbine Fuel at Rs 75.60 per litre for domestic operations in a bid to stabilize the surging prices of ATF due to the West Asia crisis. The government announced a Rs 10,000 crore price stabilization fund to help the Oil Marketing Companies to subsidise ATF prices, Union Minister Ashwini Vaishnav said in a briefing on the cabinet decisions on Wednesday

"Government has approved one-time budgetary support not exceeding Rs.10,000 crore for Oil Marketing Companies (OMCs) to provide ATF price stabilisation support to Scheduled Indian Airlines for their domestic and international operations," he said.

The budgetary support shall be in the form of interest-free advances to ...