Oil companies postpone decision to stop fuel supply to Air India till further orders

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New Delhi, October 18: The decision to stop fuel supply to Air India, the largest airline in the country and public sector, was postponed on Friday. The three state-run oil companies Indian Oil Corporation (IOC), Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL) have deferred the decision to stop fuel supplies if Air India fails to pay.

Earlier this month, oil companies threatened Air India to stop supplying aviation fuel at six major airports over non-payment. It has been said that Air India has given written assurance that it will continue to pay the arrears of fuel. He will gradually pay the fuel companies five thousand crore rupees. After this, the oil companies have postponed their decision further. Air India has breathed relief from this move of the oil companies.

It is worth mentioning that IOC Finance Director Sandeep Kumar Gupta had said recently that Air India has promised to pay Rs 100 crore every month to the three companies to settle the arrears of Rs 5,000 crore. But Air India did not keep the promise. Out of the arrears of Rs 5000 crore from the oil companies, Rs 2,700 crore belong to Indian Oil, which includes interest of Rs 450 crore. This is the reason that in late August, the three oil companies stopped the supply of oil to Air India at half a dozen airports due to default in payment.