Aviation fuel supply: Private refiners ready for take off?

Mumbai: The aviation fuel industry, one of the most lucrative links in the petroleum chain that has for decades been a public sector oligopoly, is set to undergo a sea-change with new entrants getting into the fray. Reliance Industries (RIL) has commenced operations at 13 non-metro airports while two other players, Essar Oil and Mangalore Refinery, will become operative in the next few months.
Although these players have been ready to market their products at Indian airports, they were not able to obtain the necessary licences in the past. With new policy changes in the ministry of civil aviation, the market is now opening up. The new ‘Open Access’ model being adopted by airports for fuel suppliers allows all eligible players to sell their product from common facilities.
The biggest attraction is, of course, the fact that aviation fuel is one of the few petroleum products that is out of pricing control. Air traffic too is growing at all-time highs, leading to a huge growth in aircraft movements.
11/02/08 Ramkrishna Kashelkar/Economic Times

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Categories: Indian Aviation- In General Feb 2008, New Feb 2008