Advocating open ATF pipelines at airports, oil regulator urges

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.