NEW DELHI, Feb 5 (Reuters) - BP, Europe'ssecond-biggest oil company, has applied for a license to marketaviation fuel in India as it aims to expand in emerging markets,it said on Wednesday.
Consumption of aviation fuel is set to rise in India as thegovernment estimates domestic air traffic to almost tripleduring this decade, with more of the country's 1.25 billionpeople start flying and airlines connect smaller cities.
Demand for aviation fuel in India, Asia's third biggesteconomy, could rise by 3.2 percent in the next financial yearbeginning April, according to Petroleum Planning and AnalysisCell in the federal oil ministry.
Air BP, a division of BP, supplies about 7 billion gallonsof aviation fuels and lubricants to its customers across theglobe, according to its website. Air BP has presence in 600airport in over 45 countries, it said.
Jet fuel is sold at market prices in India, unlike diesel,which is sold at state-set lower prices.
It is not clear from where BP will source the fuel for salein India.
Earlier in the day federal oil secretary Vivek Rae said theglobal energy giant could import the fuel or source it fromlocal refiners such as Reliance Industries.
BP in 2011 agreed to acquire a 30 percent stake in blocksoperated by Reliance Industries for $7 billion. The UK-basedenergy firm has also formed a 50:50 joint venture with Reliancefor sourcing and marketing gas.
BP (BP.)
