Mumbai: Indian Oil Corporation’s decision to restructure its highly profitable pipeline division and outsource operations of aviation fuel stations, depots and terminals to private players is facing stiff opposition from within the company.
The Indian Oil Officers Association (IOOA), in a letter to petroleum and natural gas minister Hardeep Singh Puri, has warned that the moves could impact the operational integrity and strategic interests of the state-run energy major.
“The decision to restructure our highly profitable and strategically vital pipeline division is deeply concerning,” IOOA stated in a letter dated July 21.
“Compounding this, the crucial position of director (pipelines) has been vacant since June 2025. This leadership void severely hampers strategic planning, jeopardises the oversight of a vital, high-pressure national energy grid,” it added.
The association also raised a red flag against the proposal to outsource operations of aviation fuel stations (AFS), depots, and terminals to private parties.
“Outsourcing to entities focused primarily on cost-minimisation risks a dangerous dilution of these non-negotiable standards, potentially leading to catastrophic failures and environmental disasters,” it said.
Priorities of these entities may not align with national interest during an emergency or geopolitical instability, IOOA warned.
IOCL and the petroleum ministry did not reply to ET’s emailed queries till press time Wednesday.
