India, Oct. 7 -- The Government is examining the possibility of bringing back a price stabilisation mechanism for Aviation Turbine Fuel (ATF) as rising jet fuel prices put increasing pressure on airlines.

Civil Aviation Minister K Rammohan Naidu said the Government is discussing with airlines and oil marketing companies (OMCs) the impact of higher ATF prices, particularly amid continuing geopolitical tensions in West Asia.

Speaking on the sidelines of a conference in New Delhi on Tuesday, Naidu said the surge in fuel prices linked to the West Asia situation has become a significant concern for the aviation sector.

ATF is one of the largest components of airline operating costs, accounting for roughly 40 per cent of total expenses. A su...