Kerala - Kochi   

Lorry operators’ strike to affect LPG supply

KOCHI: The ongoing strike by operators of bullet lorries that supply LPG from production plants to bottling plants in southern India, would soon start affecting the supply of domestic and commercial LPG cylinders in Kerala.

Five out of the six bottling plants in the State have stocks that would last for another three days (up to Monday), but the Kollam plant has already run out of stock. These plants get 50 per cent of their supply from the Kochi Refineries Limited and the rest from the Mangalore refinery.

The General Manager of Indian Oil Corporation P.M. Nazirudeen said the lorry owners have demanded contract rates that are 80 per cent higher than the rates fixed for the 2005-08 period. “A common tender is floated for the three oil companies, fixing the rates. Negotiations are on in Chennai, since most of the fleet operators are based in Namakkal and Trichy. Representatives of the three oil firms are participating in the discussions.”

A few rounds of negotiations to settle the impasse remained inconclusive as the lorry operators refused to yield to the rate of Rs.1.56 per metric tonne per kilometre fixed by the firms. The operators are demanding Rs.2.90 per km. Though a pipeline connects a bottling plant of the Bharat Petroleum Corporation in Kochi with the LPG production plant, the supply would not be able to fill the huge demand for LPG cylinders.

As of now, the State needs 1.10 lakh cylinders every day, over 90 per cent of which is used in households, Mr. Nazirudeen said. The strike would not hit the availability of LPG cylinders supplied by private firms. Neither would the supply of auto LPG be hit since it is bound by a different contract and is supplied in much-lesser volumes. “The supply of domestic LPG would be hit if the strike prolongs, because of the huge volumes involved and the long distances to be covered. Ultimately, the strike would have increase the waiting period for the supply of cylinders,” he said.

The oil companies have sought the help of the Tamil Nadu government in prevailing over the lorry owners to withdraw their strike. Under the Essential Services Maintenance Act, the State government can confiscate striking lorries (many of which are parked in the KRL premises) and put them in service if the situation gets out of hand.

The general secretary of the Tank Lorry Owners’ Federation, Jacob Mani said the demand for higher rates follows the hike in operating cost of the lorry fleet. Asked about the fallout of the fall in fuel price, he said that the contract with oil companies is bound by a clause under which the rate of transporting LPG would escalate or de-escalate in keeping with the fluctuation in fuel price.

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