Advocating open ATF pipelines at airports, oil regulator urges
29 Feb 2024
2 Min Read
CW Team
The Petroleum and Natural Gas Regulatory Board (PNGRB) has put forth a proposal suggesting the delivery of jet fuel or ATF (aviation turbine fuel) to all current and future airports through pipelines that are open for access by any supplier. The aim is to introduce competition and reduce fuel costs. Currently, ATF is transported via road and rail networks, and only a limited number of airports are connected to pipelines. Even in cases where pipelines exist, they operate on a non-open access basis, restricting the supply of jet fuel solely to the company responsible for their installation.
The PNGRB has called for input from the public and various stakeholders, including oil marketing companies (OMCs), airport operators, and airline operators, regarding the establishment of ATF pipelines linking different greenfield and brownfield airports in India.
In a notice inviting comments, the regulator stated, "Pipelines are the most cost-effective means of liquid fuel transport, whereas road transport incurs significant expenses. Considering the substantial proportion of ATF price in airline costs, the provision of pipelines could lead to a reduction in air travel expenses."
Despite an open fuel market within airport premises, the absence of a common carrier pipeline impedes the realization of an open market objective.
The regulator expressed the need to designate other ATF pipelines, currently operated by OMCs, as common/contract carriers. This decision aims to enable other OMCs to utilize these pipelines for transporting their products, fostering competitiveness within the industry.
Moreover, to guarantee a secure fuel supply, it is deemed desirable to have multiple pipeline supplies to major airports. Additionally, the regulator emphasized the importance of declaring existing pipelines as common carriers, particularly due to the historical dominance of government-owned ATF marketing companies. This step would allow private marketers access to these pipelines and accommodate the increasing fuel demand in the aviation sector.
The Petroleum and Natural Gas Regulatory Board (PNGRB) has put forth a proposal suggesting the delivery of jet fuel or ATF (aviation turbine fuel) to all current and future airports through pipelines that are open for access by any supplier. The aim is to introduce competition and reduce fuel costs. Currently, ATF is transported via road and rail networks, and only a limited number of airports are connected to pipelines. Even in cases where pipelines exist, they operate on a non-open access basis, restricting the supply of jet fuel solely to the company responsible for their installation.
The PNGRB has called for input from the public and various stakeholders, including oil marketing companies (OMCs), airport operators, and airline operators, regarding the establishment of ATF pipelines linking different greenfield and brownfield airports in India.
In a notice inviting comments, the regulator stated, Pipelines are the most cost-effective means of liquid fuel transport, whereas road transport incurs significant expenses. Considering the substantial proportion of ATF price in airline costs, the provision of pipelines could lead to a reduction in air travel expenses.
Despite an open fuel market within airport premises, the absence of a common carrier pipeline impedes the realization of an open market objective.
The regulator expressed the need to designate other ATF pipelines, currently operated by OMCs, as common/contract carriers. This decision aims to enable other OMCs to utilize these pipelines for transporting their products, fostering competitiveness within the industry.
Moreover, to guarantee a secure fuel supply, it is deemed desirable to have multiple pipeline supplies to major airports. Additionally, the regulator emphasized the importance of declaring existing pipelines as common carriers, particularly due to the historical dominance of government-owned ATF marketing companies. This step would allow private marketers access to these pipelines and accommodate the increasing fuel demand in the aviation sector.
Next Story
RentenPe and Mygate Partner to Transform Rent Payments in India
Through a strategic partnership, RentenPe and Mygate aim to streamline rent payments and promote financial inclusion by enabling rent-based credit scores for Indian renters. RentenPe, India鈥檚 first Rent Credit Score鈩� platform and a pioneer in rental fintech innovation, has entered a significant alliance with Mygate, the leading community management app in the country. This partnership will transform rent transactions for millions of Indian households by embedding RentenPe鈥檚 payment and rent credit scoring technology directly within the Mygate app. With this integration, all ren..
Next Story
Supreme Unveils New Brand Identity to Elevate Lifestyle
Supreme, a respected name in Indian real estate with a four-decade legacy, has announced a complete rebranding. The move includes the launch of a new logo and a revamped website, both reflecting the group鈥檚 refreshed vision to 鈥楨levate Lifestyle鈥�. This brand transformation represents more than a visual refresh鈥攊t marks a strategic shift in the company鈥檚 mission, visual identity and market positioning. The update will be visible across all of Supreme鈥檚 digital, social and offline communication platforms. At the core of the initiative is a renewed focus on purposeful design..
Next Story
Capri Loans Launches #TarrakiKeHaath Campaign Honouring India鈥檚 Everyday Heroes
Capri Global Capital Ltd (Capri Loans), a leading non-banking financial company, has unveiled its latest brand campaign, #TarrakiKeHaath, a powerful tribute to the everyday hands that build India 鈥� from kirana store owners and taxi drivers to dhaba workers, tailors, and carpenters. Narrated by Capri Loans鈥� long-standing brand ambassador and acclaimed actor Pankaj Tripathi, the campaign celebrates the dignity, resilience, and aspirations of self-employed individuals and small business owners who form the backbone of Bharat鈥檚 economy. Conceptualized by Rediffusion Brand Solutions, the..
