The HPCL on Wednesday stopped jet fuel supplies to Kingfisher due to non-payment of dues, said company officials.
Earlier on Wednesday, the International Air Transport Association (IATA) suspended Kingfisher Airlines from its account settlement system due to non-payment of fees, dealing a fresh blow to the carrier as it seeks funds to stay aloft.
The industry group's clearing house, ICH, settles accounts between the world's airlines, airline-associated companies and travel agencies.
"Kingfisher's participation in the ICH will be reinstated after the airline fulfils the ICH requirements," IATA spokesman Albert Tjoeng said in an email.
Kingfisher can still partner with other airlines by settling with them directly, he said.
About 240 airlines, representing about 84 percent of global scheduled airline traffic, belong to the IATA.
Kingfisher said it could not settle the dues as its bank accounts have been deactivated by tax authorities, the same reason the company gave when it had to cancel most of its fights last month.
Of the 64 planes in its fleet, Kingfisher is now using just 28, disrupting the travel plans of thousands of passengers across the country.
The company is in talks with tax authorities and expects its bank accounts to be reactivated shortly, the carrier said in a statement.
(With inputs from PTI, Reuters)