Open access may not lead to reduced ATF rates

New Delhi: The end of the monopoly of oil PSUs on selling jet fuel at Delhi and Mumbai airports is expected to bring competition and more transparent pricing.
However, increased throughput as well as operation and maintenance charges after the airport developers add new facilities may cancel out these advantages.
ATF supply facilities at Mumbai and Delhi airports are owned and operated by oil PSUs while the land is owned by the developers.
The airport authorities levy land lease and throughput charges on oil PSUs. A large part of the throughput fee, besides operation and maintenance (O&M) charges, are included in the final fuel price.
In time, the airport developers will take over the supply infrastructure, set up more more hydrants and go for an open access system where both public and private firms can sell fuel. This will lead to higher charges on the suppliers. "We will give a break-up of the prices, including O&M and throughput charges, which will bring transparency to the system," said a Delhi airport official.
But with more infrastructure and hydrant facilities, O&M charges may be hiked.
22/08/07 Anirban Chowdhury/Business Standard

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Categories: General Aviation Aug 2007