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MRPL plans to cut jet fuel exports

December 13, 2006 17:05 IST

Mangalore Refinery and Petrochemicals Ltd, a subsidiary of Oil and Natural Gas Corporation, considers plans to increase sales of aviation turbine fuel in the domestic market and cut down on exports gradually.

"We are setting up infrastructure in and around Mangalore to increase our domestic market share," MRPL Managing Director R Rajamani said in New Delhi on Wednesday.

At present, the company was exporting more than a million tonnes of ATF annually, but sold only around 10,000 tonnes in the domestic market, he said.

"We will reduce our exports as we gradually increase our domestic market share," he said, adding the company has already reduced exports this year as compared

to last year.

Asked whether MRPL planned to stop ATF exports, Rajamani said: "This won't be possible. We will continue to export but a reduced volume."

He, however, declined to divulge the investment MRPL has planned to set up the necessary infrastructure for ATF. "We are setting up infrastructure in Mangalore, Calicut, Goa and Bangalore," he said.

The company is in talks with a few airlines for selling ATF to them.

"Pricing is the key issue. No airline will be willing to switch over untill they are given an incentive," he added.

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