State-owned oil companies today snapped supplies of jet fuel (ATF) to Air India after the national carrier failed to honour payments even after 90-day credit period. According to an oil company official, Indian Oil, Bharat Petroleum and Hindustan Petroleum have stopped ATF supplies to Air India at the four metros, Trivandrum and Kochi from this evening.
The move follows Air India not honouring its commitment to make payments for jet fuel it bought from the oil companies even after expiry of 90 day credit period.
Air India owes about 4,200 crore rupees as past dues towards fuel purchases. The official said that payments for ATF sold to the national carrier in mid-October was due on January 22 but AIR India did not make any payment.
