Union civil aviation ministry rejected the need to declare Aviation Turbine Fuel or ATF as a notified petroleum product, as it feels there is no requirement of any regulatory body for maintaining or increasing ATF supplies.
According to the ministry adequate controls and sufficient competition with regard to price and supply of ATF is present.
The ministry also feels that there is no need for securing its equitable distribution or ensuring adequate availability, reports suggest.
This comes in response to the demand of the Civil Aviation ministry to include ATF under the regulatory regime of Petroleum and Natural Gas Regulatory Board or PNGRB in order to cut down burden on airlines.
PNGRB is mandated to regulate the refining, processing, storage, transportation, distribution, marketing and sale of petroleum, petroleum products in the country and to promote competitive practices in the sector.
Civil aviation ministry had earlier alleged that ATF infrastructure is majorly controlled and owned by public sector oil companies; hence transparency and fair competition is being hindered by public sector oil companies, which act as monopolies.
oil ministry further feels that since ATF is fully decontrolled and oil marketing companies including private players have been participating in various tenders floated by airlines for fuel supply, question of unfair practices doesn’t arise.