Reliance wants access to ATF pipeline of government oil companies, this is the whole matter

Reliance Industries Limited, owned by billionaire industrialist Mukesh Ambani, desires access to the storage facilities and pipelines used by public sector enterprises. Over the years, these pipeline storages have been constructed by government companies. They use this to deliver aviation fuel (ATF) to airports from storage facilities and oil refineries.

With access to pipelines and the storage facilities of state-owned enterprises, Reliance hopes to increase its market share in the fuel industry at some of the busiest airports in Asia. Currently, Reliance accounts for 25% of the nation's total aviation fuel production. Compared to government companies, this is far less.

This is why Reliance wants access to storage depots and pipelines. She has been demanding this for almost a decade. Reliance says that this will increase competition in the supply and distribution of ATF.

Petroleum regulator – The Indian Petroleum and Natural Gas Regulatory Board (PNGRB) has invited comments on draft rules regarding the supply of ATF to airports through pipelines. It believes that all suppliers should have access to the pipeline to increase competition in ATF supply and reduce fuel costs. Reliance has given this suggestion on the draft of PNGRB itself.

India's fuel market is free, but ATF has been supplied to the country's busy airports for decades through pipelines built by state-run petroleum companies - Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL). She goes.

India's public and private sector refineries together produce 1.71 crore ATFs. Out of this, 82 lakh tonnes is consumed in the country and the rest is exported. Talking only about Reliance, it has two refineries in Jamnagar, Gujarat. About 50 lakh tonnes of ATF is produced from these. A large part of it is exported.

The number of people traveling by air in India has been increasing rapidly in the last few years. Due to this, the demand for ATF has also increased. The demand for ATF has increased by about 11.8 percent during the last financial year. This is the reason why the Petroleum Regulator wants to ensure an uninterrupted supply of aviation fuel by changing the rules.