The two state owned oil marketing companies are opposing the oil regulator’s move to declare their ATF pipelines between their Mumbai refineries and the Mumbai airport as “common carrier” despite the fact that their Rs 60 crore capex has been recovered long back.
Opening up of the two pipelines to private companies would have allowed competition in the supply of Aviation Turbine Fuel (ATF) at the Mumbai airport, where three oil PSUs are presently supplying the ATF. No private ATF supplier is able to supply ATF at Mumbai airport due to constraints in transporting fuel through trucks as the laying of new pipelines in the already congested Mumbai is not feasible.
