NEW DELHI: The Petroleum and Natural Gas Regulatory Board (PNGRB) has proposed supplying jet fuel or ATF (aviation turbine fuel) to all existing and future airports through pipelines that can be accessed by any supplier.
As per the regulatory body, the move will bring in competition and cut fuel costs. PNGRB has invited comments from the public and various stakeholders, including oil marketing companies (OMCs), airport operators, and airline operators, for the development of aviation turbine fuel (ATF) pipelines. Currently, jet fuel is transported by road and rail networks, and only a limited number of airports are linked to pipelines.
“Pipelines are the cheapest mode of transport of liquid fuels, with road transport being quite costly. And looking at the high share of ATF price in airline costs, provision of the pipeline could bring down the cost of air travel,” the regulator said in a notice inviting comments. It said in the absence of a common carrier pipeline, the objective of this open market cannot be achieved. The PNGRB also mentioned that there are a few other ATF pipelines that are being operated by the OMCs, which also need to be declared as common or contract carriers.
“This move will enable other OMCs to utilise these pipelines for transporting their products, fostering competitiveness within the industry.” Transporting ATF by any other means than the pipeline results in logistical inefficiencies, increased expenses, and disruptions in the supply chain.