Dealers of remote fuel outlets complain of poor supply

Availability of diesel has been hit, they say

Many motorists are complaining that fuel outlets of certain oil companies were going dry for the past week or so in the outskirts of the city and also in other parts of the State. This, dealers said, was due to two reasons — dealers unable to pay in advance for fuel and alleged rationing by companies because of high fuel prices.

“The issue mainly pertains to outlets that stock fuel from Hindustan Petroleum Corporation Limited (HPCL) and Bharat Petroleum Corporation Limited (BPCL). These are not outlets on main roads but those in far flung areas and the smaller dealers. Large volume dealers have been unaffected by this. While the supply of diesel has been affected, dealers are being asked to opt for the premium varieties of petrol. Oil companies are also pushing dealers to take more of petrol and less of diesel,” explained an office-bearer in one of the dealers’ associations.

P. Nandagopal, who went on a trip to the southern districts a couple of days ago, said some outlets did not have diesel. “During my journey, since bunks had ropes tied across the entrance, I had to run on reserve until I found a bunk that had diesel,” he said.

A dealer in the Coimbatore region said oil companies were telling them to opt for premium petrol varieties since the loss incurred by them was lower when compared with the regular varieties. “This has led to us to losing regular customers. As the company has all of a sudden removed the credit facility, we are unable to supply fuel on credit to large customers and those who had already taken on credit are not able to repay their dues. Dealers are forced to take loans outside or even pledge personal gold jewellery to purchase loads,” said an HPCL dealer from the Coimbatore region.

A dealer in the Chennai area said even though dealers had paid their dues and had paid for the load to the company, everyday loads were being carried over to the next day. “Only around 80% of supply is being maintained. It is a very difficult time for dealers. If outlets go dry, we stand to lose business. Companies other than Indian Oil Corporation Limited are rationing fuel because it is cheaper to not sell due to the price difference between petrol and diesel,” he said.

Official sources in HPCL and BPCL, however, insisted that there was no issue with the supplies.