Millennium Post

Govt dismisses British BP’s plea for selling ATF

The government has rejected BP’s application for selling ATF, saying its expenditure in India so far does not qualify it to get a fuel retailing license, but has allowed it to apply afresh with more details.

The Petroleum Ministry, earlier this month, wrote to Europe’s second-largest oil company, saying its $477 million investment in India till date does not qualify it to begin selling jet fuel to airlines, a senior Oil Ministry official said.

A license to retail any of the transport fuels -- petrol, diesel or aviation turbine fuel (ATF) -- is contingent upon a company investing or proposing to invest Rs 2,000 crore in oil and gas exploration and production (E&P), refining, pipelines or terminals within 10 years.

The official said BP’s $477 million investment since entering in 2011 included both capital and operating expenditure, mostly in its partner Reliance Industries’ offshore blocks, including the flagging KG-D6 in Krishna Godavari basin.
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