State-owned oil companies have resumed jet fuel supplies to Air India after the national carrier promised to pay Rs 268 crore in dues on Friday.
Oil company officials said the supplies are being resumed after Air India promised to clear dues by on Friday evening.
All the three oil companies - Indian Oil, Bharat Petroleum and Hindustan Petroleum - had jointly stopped Air Turbine fuel (ATF) supplies to Air India at Delhi, Mumbai, Kolkata, Chennai, Trivandrum and Kochi from 1600 hours on Thursday.
The carrier had failed to honour payments even after 90-day credit period.
Earlier in the day, Civil Aviation Secretary Nasim Zaidi said that he had asked the petroleum secretary to not stop the jet fuel supply to the carrier.
"I have spoken to the Petroleum Secretary not to disrupt (aviation turbine fuel) supplies and he has assured," Civil Aviation Secretary Nasim Zaidi said.
Senior Air India officials have claimed that the airline owed Rs 260 crore to the oil companies for the credit period and "we are well within the credit limit."
Overall, Air India owes over Rs 4,170 crore to public sector oil companies in unpaid jet fuel bills, according to figures tabled in Parliament.
The oil companies decided to stop ATF supplies saying Air India had not honoured its commitment to make payments for jet fuel it bought from the oil companies even after expiry of 90 day credit period.