HPCL stops fuel supply to Kingfisher, resumes after payments

State-owned Hindustan Petroleum Corp Ltd today briefly stopped jet fuel supplies to Kingfisher Airlines over delays in payments but resumed supplies shortly after the beleaguered airline made payments.

State-owned Hindustan Petroleum Corp Ltd (HPCL) on Tuesday briefly stopped jet fuel supplies to Kingfisher Airlines over delays in payments but resumed supplies shortly after the beleaguered airline made payments.

HPCL had a few months back put Kingfisher on cash-and-carry requiring the the Vijay Mallya-run airline to make daily payments before fresh aviation turbine fuel (ATF) supplies are made.

HT Image

"There was delay in payment this morning and so supplies were stopped," a source said. "Kingfisher immediately cleared the payment, shortly after which jet fuel supplies were resumed".

There was not much disruption in flight schedule as the stoppage happened in afternoon when Kingfisher has very few flights.

Kingfisher's ATF consumption has come down drastically during the past couple of months. It consumed fuel worth Rs 4-4.5 crore per day in first quarter of 2012 calendar year which has now come down to Rs 2-2.5 crore.

"There are no issues now," the source said.

HPCL, the airline's biggest fuel supplier, had in March too stopped supplies over non-payment of dues.