State-owned Hindustan Petroleum Corp (HPCL) has resumed oil supplies to Kingfisher Airlines after the debt laden airline agreed to pay for daily fuel off-take.
HPCL, which is Kingfisher’s biggest aviation fuel supplier, had stopped refueling Vijay Mallaya-run airline on March 7, 2012 evening. It decided to resume supplies after hectic negotiations.
Kingfisher, which owes Rs 515-520 crore in fuel bills along with interest, had not been honouring its daily fuel bills, prompting the state-owned oil firm to snap supplies. Kingfisher accounts for 47% of HPCL’s total jet fuel sales.
