IOC Kick Starts A New Journey In Aviation Fuel, Enters The $ 2.7 Bn Global Market

The Indian Oil Corporation (IOC) has started its export journey with aviation fuel required to fly tiny planes and unmanned aerial vehicles (UAVs). According to media reports, this new beginning embarks India’s entry into a global market worth an estimated USD 2.7 billion. 

The company claims to have exported its first cargo of 80 aviation gas barrels from the Jawaharlal Nehru Port Trust (JNPT) to Papua New Guinea, each having a capacity of 16 kilo litre of aviation gas. 

In a statement issued by the company, IOC chairman SM Vidya underlined the significance of their new export journey stating that the indigenous production of gas, AV 100 LL is of dual importance. It will not only help to save foreign exchange but will also support domestic flying schools that train budding pilots.

Aviation gasoline is a high-octane fuel that performs better and meets higher quality standards than imported fuels. It is commonly used in flying schools for piston-engine aircraft and India’s export venture will support 35 flight schools across the nation and is approved by the Directorate General of Civil Aviation (DGCA). 

Meanwhile, countries like Russia and Ukraine employ unmanned aerial vehicles (UAVs) more frequently in contemporary combat. Therefore, in terms of development, India will represent a significant step forward in terms of its defense readiness.

IOC is looking forward to expanding aviation gasoline exports in countries like the Asia Pacific, South America, West Asia, Africa and Europe after fulfilling the fuel demand in the homeland.

Till September last year, the country was purchasing oil from the European markets. IOC's Vadodara facility started producing aviation fuel in the same month, as of now the IOC is the only manufacturer of the fuel in country and the plant has a 5,000-tonne annual capacity.

The IOC chairman clarified the country’s aviation traffic is anticipated to expand a pace of 7 per cent CAGR and the worldwide market for aviation gas is anticipated to grow at a rate of 5 per cent CAGR. 

He further voiced his belief that India will be able to capture a sizable portion of the market because of its superior performance, high standards of quality, and affordable prices.