State-owned oil companies today snapped supplies of jet fuel (ATF) to Air India after the national carrier failed to honour payments even after 90-day credit period.
"All three oil companies (Indian Oil, Bharat Petroleum and Hindustan Petroleum) have stopped ATF supplies to Air India at the four metros, Trivandrum and Kochi from 1600 hours," an oil company official said.
The move follows Air India not honouring its commitment to make payments for jet fuel it bought from the oil companies even after expiry of 90 day credit period.
"The government had last year asked us to give a 90-day credit period to Air India, which we diligently did. As per that, payments for ATF sold to Air India in mid-October was due on January 22 but it (Air India) did not make any payment," the official said.
Air India owes about Rs 4,200 crore in past dues towards fuel purchases.