Move taken to avoid higher costs involved in buying diesel in bulk from three oil companies

Next time you go to a petrol bunk in the city, there is a probability of finding a garbage-laden lorry waiting to fill fuel too; Chennai Corporation has decided to take its fleet to such retail outlets to avoid paying more for diesel.

At present, the civic body is supplied diesel in bulk at five storage facilities, and the price under this arrangement translates into Rs. 11 more per litre of the fuel, since customers buying in bulk are not entitled to subsidised fuel.

The Corporation Council on Friday decided to have all its 1,044 vehicles get subsidised diesel at retail outlets to cope with escalating diesel costs because of bulk procurement from three oil companies. The civic body has been procuring 6,900 kilolitre of diesel per year from Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum.

The Corporation has fuel storage facilities in Pudupet, Basin Bridge, Perambur, Shenoy Nagar and Saidapet.

The Corporation purchases diesel at nearly Rs. 68 per litre, whereas the same fuel is available at retail outlets for nearly Rs. 57. “We are working out the mode of payment. We are also trying to regulate the timing of vehicles sent for filling diesel to avoid hardship to motorists,” the official added.

Sources in BPCL said the Corporation had not sent any intimation to this effect. It was continuing to procure 60 kilolitre diesel every month from the company and there was no way the Corporation could be stopped if it decided to go to retail outlets, the sources said.

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