The Hindu : LPG tanker operators call off strike

Online edition of India's National Newspaper
Saturday, Jan 18, 2003

Southern States

Southern States - Tamil Nadu

LPG tanker operators call off strike

By Our Special Correspondent

NAMAKKAL Jan. 17. The LPG Bulk Transport Owners Association (southern region) called off the week-long strike today following a settlement with all three oil majors on transport fare revision.

The association directed tanker operators to resume their services forthwith to clear the stocks. According to the president, M.Ponnambalam, the Indian Oil Corporation, the Hindustan Petroleum Corporation Ltd, and the Bharat Petroleum Corporation Ltd., agreed to a uniform fare revision, viz., 5.75 per cent over and above the existing fares.

Mr. Ponnambalam said the operators were getting a fare of 1.70 paise per km per tonne and with the new agreement, transport charges would go up by 10 paise per km per tonne. The new fares would be valid for a period of two years, extendable by one more year.

Mr. Ponnambalam said the tankers would be rushed to the Mangalore port, main supply line, to clear the backlog. On an average, 150 tankers would be clearing the stock everyday during normal time, but to lift the accumulated stock, 250 tankers would be deployed round the clock.

As many as 2,700 tankers would be inducted by the oil companies, of which IOC would provide 1,400 tankers.

Though the IOC initially agreed to pay 8.5 per cent hike, it went back on its words later. This provided leverage for the other two companies to engage in hard bargaining. Meanwhile, dissidence reared its head in the association, causing apprehension among tanker operators that it would upset the apple cart.

However, the association weathered the storm and succeeded in striking an agreement on uniform rates. The agreement was first signed with the HPCL on January 13 and with the IOC on January 14.

Though the talks with the BPCL was scheduled for January 18, the company advanced the process by a day and clinched the deal on January 17 in almost identical terms.

Mr. Ponnambalam said the southern region got good rate compared to other regions where the hike varied from 3.5 per cent to 4.5 per cent.

Meanwhile, it is learnt that dissidents discreetly agreed to the 5.75 increase.

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