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Mumbai airport fuel supplier seeks raise, airfares may rise

Fliers from Mumbai's Chhatrapati Shivaji International Airport (CSIA) are likely to see a rise in airfares as Mumbai Aviation Fuel Farm Facility Private Ltd (MAFFFPL), the company operating the aircraft fuel supply infrastructure, has sought an increase in charges.

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Fliers from Mumbai's Chhatrapati Shivaji International Airport (CSIA) are likely to see a rise in airfares as Mumbai Aviation Fuel Farm Facility Private Ltd (MAFFFPL), the company operating the aircraft fuel supply infrastructure, has sought an increase in charges.

The present fuel infrastructure charges (FIC) at the airport stands at Rs 710/kilolitre. The company has approached the regulator, Airport Economic Regulatory Authority (Aera), to increase it to Rs 882/kl for the control period till the end of March 2021.

A consultation paper has been issued in this regard by Aera, seeking comments and inputs from all the stakeholders by October 9.

MAFFFPL is building an integrated fuel farm facility on approximately 30,000 square metres with a static storage capacity of 47,500 kl of ATF. It will act as a single point of operation for all the partner oil companies at the site of the existing facilities of Indian Oil Corporation (IOC) and Hindustan Petroleum Corp Ltd (HPCL) near the domestic terminal 1A in Santacruz. The company claims it will help in improving the capacity of the operations.

MAFFFPL is a joint venture with IOC, Bharat Petroleum Corporation Ltd, HPCL and Mumbai International Airport Private Ltd (MIAL) holding an equal stake. MIAL is the operator of GVK-run CSIA.

Currently, the public sector oil marketers operate from their respective facilities located at Sahar and Santacruz areas on the land provided by CSIA.

As per the consultation paper, Mott Macdonald India, which has assessed the proposed new integrated common user tank farm and allied facilities, has estimated the cost of the project at Rs 409 crore, out of which MIAL has already spent around Rs 130.5 crore in the new fuel hydrant system at Terminal 2.

CISA, which is counted as world's busiest amongst the single-runway facilities, handled 837 flights a day in fiscal 2017 with around 45.2 million passengers flying through the city. As per an estimate by MIAL, the fuel throughput is projected to increase 2% per annum during the control period based on historical growth in air traffic movement.

Costly affair

Company has sought increase in charges to Rs 882/kl from Aera for the control period till the end of March 2021
Consultation paper has been issued by Aera seeking comments and inputs from all stakeholders

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