Reliance is pushing for access to ATF pipelines owned by PSUs, facing resistance over competition issues.
Reliance has requested access to Aviation Turbine Fuel (ATF) pipelines and storage facilities built by Public Sector Undertakings (PSUs) to increase its market share in jet fuel. PSUs, however, are resisting this move, arguing that ATF pipelines are not natural monopolies and do not need to be operated as common carriers to promote competition.
Indian Oil Corporation (IOC) stated that road transport already provides sufficient competition and that ATF pipelines differ from natural gas pipelines, which lack alternative transportation modes. Reliance’s request was made in response to a call from the Petroleum and Natural Gas Regulatory Board (PNGRB) for stakeholder input on improving ATF supply to airports.
PSUs have suggested that new pipelines could be designated as common carriers to ensure economic viability and reduce dependency on single pipelines. This proposal aims to create a more competitive and efficient ATF supply chain without compromising existing infrastructure.
