Air India’s Rs 5,000 crore unpaid fuel bills weigh on oil companies amid flaring crude
NEW DELHI: Air India’s unpaid fuel bills of about Rs 5,000 crore is weighing on fuel retailers who need extra cash for buying more dollars to pay for costlier crude at a time when demand is picking up.
Industry executives said they were yet to hear from the government on the timeline for payment, though the Centre has said it would take over the carrier’s total dues of nearly Rs 16,000 crore and non-core assets through a holding company before the Tatas take over.
IndianOil alone accounts for Rs 3,000 crore, or 60%, of Air India’s unpaid fuel bills. Other fuel suppliers together account for the remaining Rs 2,000 crore dues, according to industry estimates.
