Reliance reports government OMCs to competition panel
BS Reporter / New Delhi Jul 15, 2010, 00:39 IST
Reliance Industries Ltd (RIL) has approached the Competition Commission of India (CCI) against the government-controlled oil marketing companies (OMCs) with a complaint of cartelisation and undercutting on prices for aviation turbine fuel (ATF) in a tender floated by Nacil, the owner of Air India.
The biggest private petroleum company had lost the tender due to OMCs adopting a uniform strategy of differential discounts at different locations. When asked, CCI officials were not available for a comment.
A Reliance spokesperson confirmed the development but did not give any details. RIL had earlier complained to the Petroleum and Natural Gas Regulatory Board against OMCs for underpricing auto fuels.
The tender for supply of ATF at a particular airport goes to a company that offers the highest discount. In the Nacil tender finalised recently, OMCs had identically offered heavier discounts at locations where RIL was present and a lower discount at airports where they had no competition from RIL. Nacil currently enjoys around 18 per cent share in the domestic airline business and 22-23 per cent in outbound international travel.
The ATF market is dominated by the government companies since they traditionally had storage facility in New Delhi, Kolkata and Mumbai airports, that account for around half of the country's ATF demand of 4.62 million tonnes. The private fuel retailer is currently present at 24 other airports.
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