Corporation to resume bulk purchase of fuel

September 30, 2014 11:19 am | Updated 11:19 am IST - CHENNAI:

The vehicles will now be supplied diesel in bulk at the five storage facilities. Photo: B. Jothi Ramalingam

The vehicles will now be supplied diesel in bulk at the five storage facilities. Photo: B. Jothi Ramalingam

Nine months after its decision to fuel its fleet at retail outlets to avoid paying more for diesel, the Chennai Corporation has decided to procure the fuel in bulk again.

On Tuesday, the Corporation council is likely to pass a resolution pertaining to procurement of diesel in bulk from Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum.

The civic body’s 1,044 vehicles will now be supplied diesel in bulk at the five storage facilities in Pudupet, Basin Bridge, Perambur, Shenoy Nagar and Saidapet.

In January 2014, when the Corporation was purchasing diesel at nearly Rs. 68 per litre, it had decided to have its fleet fuelled at retail outlets. The same quantity of fuel was then available at retail outlets for nearly Rs. 57.

Last year, the civic body procured 6,900 kilolitre of diesel in bulk from Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum.

The mode of procurement will be in place whenever the price of diesel in bulk falls below that at retail outlets.

Bulk price falls

On September 1, the price in retail outlets was Rs. 62.92 per litre, whereas bulk procurement was made at Rs. 61.89 per litre.

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