Sunday, July 15, 2018

Reliance vs PSUs: Battle for supplying jet fuel to Mumbai airport intensifies

Mumbai: The battle over lucrative pipelines supplying jet fuel to Mumbai airport is hotting up with a powerful formation of Reliance Industries and private airlines Jet Airways and Emirates trying to break the stranglehold of PSU oil firms BPCL and HPCL.
BPCL and HPCL built and operate two separate pipelines from their Mahul refineries in Mumbai to supply jet fuel (ATF) to airlines at the Chhatrapati Shivaji International Airport at Santacruz in the city.
Reliance, which produces a fourth of India's aviation turbine fuel (ATF), wants access to these pipelines to be able to get a pie of Rs 10,000 crore fuel trade that happens at one of Asia's busiest airports.
While Reliance and airlines feel competition among fuel suppliers would bring down costs, HPCL and BPCL said the pipelines are their "captive" infrastructure to take products out of the refineries and giving third party access to them would hurt their operations and profits.
15/07/18 Reuters/DNA