Monday, June 18, 2018

Threat to ATF monopoly

New Delhi: State-owned firms may lose their monopoly to sell aviation turbine fuel (ATF) at the Mumbai airport if the oil sector regulator has its way on allowing competition, which would reduce the operating cost of airlines and bring down fares.

India's busiest airport accounts for about 20 per cent of ATF consumed in the country, while fuel makes up 40 per cent of the operating cost of the airlines.

The Petroleum & Natural Gas Regulatory Board (PNGRB) has suggested the HPCL and BPCL pipelines be connected to the Mumbai airport storage terminal as a common carrier and be regulated by the PNGRB.

The PNGRB has sought comments on its proposal from all stakeholders.

As expected, the state-owned firms have opposed the move, but airlines, logistic firms and private refiners have welcomed the exercise.

The development will help to offer better fuel prices to the airlines and subsequently benefit the fliers and the cargo business.

At present, ATF is supplied by HPCL and BPCL refineries, while IOC is a party to use the pipeline.
18/06/18 R Suryamurthy/Telegraph

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