+
Advocating open ATF pipelines at airports, oil regulator urges
AVIATION & AIRPORTS

Advocating open ATF pipelines at airports, oil regulator urges

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
Infrastructure Urban

Budget Proposal Aims to Boost Investments

The recent budget proposal has introduced measures designed to promote investments and generate job opportunities across various industries, as reported by the Economic Times. This initiative seeks to stimulate economic activity and strengthen the country's growth trajectory by encouraging both domestic and foreign investments. Key aspects of the proposal include targeted incentives for sectors poised for expansion, such as renewable energy, infrastructure, and technology. The government aims to create a more favorable investment climate by offering tax benefits, subsidies, and streamlined reg..

Next Story
Infrastructure Urban

DGTR Proposes Anti-Dumping Duty on Aluminium

The Directorate General of Trade Remedies (DGTR) has proposed imposing an anti-dumping duty of up to Rs.577 per tonne on aluminium frames imported from China, as reported by the Economic Times. This move aims to address concerns about unfair trade practices and protect the domestic aluminium industry from the adverse effects of low-cost imports. The proposed anti-dumping duty comes in response to allegations that Chinese aluminium frames are being sold in the Indian market at prices below fair market value. Such practices are deemed harmful to domestic manufacturers, potentially leading to ma..

Next Story
Infrastructure Urban

Indian Financial System Resilient Amidst Challenges

The Reserve Bank of India (RBI) Deputy Governor M. Rajeshwar Rao has emphasized the robust nature of the Indian financial system despite global economic headwinds, according to Economic Times. Rao?s comments reflect confidence in the stability and resilience of India's financial sector amidst a backdrop of international economic uncertainties and financial volatility. Rao highlighted that India?s financial system is well-equipped to handle external shocks due to its solid regulatory framework and prudent risk management practices. The country?s banking sector has demonstrated resilience throug..

Talk to us?