Oil companies appoint beyond the need of the vehicle users

Excess appointment of agents for distributing petroleum products and distributors for LPG refills has been bringing down the profit margin of the existing permit-holders, and the oil companies should evolve and implement restriction in appointing new agents.


A resolution adopted at the state general body meeting of All India SC and ST petroleum dealers and LPG distributors welfare association here on Thursday, said the oil companies appointed a number of agents, over and above the need of the vehicle users. Pointing out that the investment on a petrol pump was huge, and the trade needed a gestation period of at least 10 years for stabilisation, the resolution urged the petroleum companies to restrict the appointment of new agents.

P.Pazhaniappan, state president of the association, said before issuing permit, the oil companies should contact the existing dealers located within a radius of five km. Further, the companies should ascertain the profitability of the existing pumps in an area, before granting permission to start new one.

He said a large number of applications from the SC and ST community were pending for the past few years, and appealed to the oil companies to clear the same without further delay.

He urged the oil companies to check the running of the petrol pumps, and LPG distribution centres allotted to non-SC and non-ST persons under the SC and ST reservation quota. M.Sivanandam, general secretary, and M.Magesh, treasurer, spoke.