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Indian carriers to import fuel?

2/10/2012 10:43:46 AM

The Indian government is considering plans to allow local airlines to import jet fuel - a move that they say could cut fuel costs by up to 20 per cent.

 

The airlines, almost all of which are losing money, currently buy fuel from local oil marketing companies.

 

However, the logistics and practicalities of importing may take the shine off the initiative.

 

"If they don't have the money to pay local oil companies, how will they buy in the international market?" said one analyst, while others have pointed out that storage and transportation will dilute any savings made.

 

The government decision still needs cabinet approval.

 

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