NEW DELHI, June 3 — India approved a 100 billion ‌rupee (RM4.1 billion) fuel stabilisation fund today to help keep jet fuel prices in check for airlines hit by rising costs from the Iran war.

The government said the support would be provided as interest-free advances ‌to oil marketing companies ⁠to cover under-recoveries — the ⁠gap between ⁠market-linked jet fuel prices and ⁠the ⁠moderated rates charged to airlines.

“The measure will help protect ⁠and sustain domestic and international air connectivity, ensuring continuity of air services,” it added.

Shares of India’s largest airline, IndiGo, reversed course ⁠to trade up 1 per cent.

Globally, airlines have been squeezed by rising ⁠jet fuel prices, which can account for ⁠up ⁠to 40 per cent of operating costs. — Reuters