• Wednesday, February 28, 2024
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BusinessDay

BP to market Jet Fuel in India

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bpBP, Europe’s second-biggest oil company, has applied for a license to market aviation fuel in India as it aims to expand in emerging markets.

Consumption of aviation fuel is set to rise in India as the government estimates domestic air traffic to almost triple during this decade, with more of the country’s 1.25 billion people start flying and airlines connect smaller cities.

Demand for aviation fuel in India, Asia’s third biggest economy, could rise by 3.2 percent in the next financial year beginning April, according to Petroleum Planning and Analysis Cell in the federal oil ministry.

Air BP, a division of BP, supplies about 7 billion gallons of aviation fuels and lubricants to its customers across the globe. Air BP has presence in 600 airports in over 45 countries.

Jet fuel is sold at market prices in India, unlike diesel, which is sold at state-set lower prices.

BP in 2011 agreed to acquire a 30 percent stake in blocks operated by Reliance Industries for $7 billion. The UK-based energy firm has also formed a 50:50 joint venture with Reliance for sourcing and marketing gas.