Saturday, June 09, 2018

Private firms renew call to supply ATF

Mumbai: Private sector oil companies have renewed their demand to have access to Mumbai airport and supply aviation turbine fuel (ATF) to airline customers.

Currently, the entire ATF demand of 1.4 MMTPA (million metric tonnes per annum) at the Mumbai airport is solely met by public sector oil companies — IOCL, BPCL and HPCL — through two pipelines originating from the two refineries belonging to BPCL and HPCL in Mumbai.

IOCL had entered into an arrangement with BPCL, HPCL and a joint venture company called Mumbai Aviation Fuel Farm Facility Pvt. Ltd (MAFFFL) to supply ATF at the airport, where airlines consume more than a fifth of the total fuel requirement of the country.

Private oil companies insist that in the absence of competition, airlines do not enjoy the benefit of competitive prices at Mumbai as has been the case at other airports where Reliance or other private players are present. To allow access to all ATF suppliers on a non-discriminatory basis, MAFFFL was incorporated by Mumbai International Airport Pvt. Ltd. (MIAL), the operator of the airport, for developing the integrated fuel farm facility (IFFF) at the airport.

But private sector oil companies claim that MAFFFL is being controlled by the public sector oil companies which are creating resistance to allow private players to enter the airport. An email seeking response from the PSU firms remained unanswered.
09/06/18 Lalatendu Mishra/The Hindu