Chennai

Petroleum dealers write to Centre asking not to restrict fuel supplies

 Crowd at a petrol bunk in Chennai. File

Crowd at a petrol bunk in Chennai. File | Photo Credit: The Hindu

The Consortium of Indian Petroleum Dealers (CIPD) has written to the Centre asking them not to restrict petrol/diesel supplies to fuel outlets. 

In the letter addressed to the Centre and Oil Marketing Companies (OMCs), the CIPD President M. Narayana Prasad and General Secretary K. Suresh Kumar said that, “OMC dealers are now being pressurised by the companies to be cautious in sale of fuels —both petrol and diesel, especially the latter, and that we should not sell more and above the normal sale, meaning new customers namely fleet or industrial or for generators should not be entertained. Also, loads would be supplied only with a petrol combination and not full diesel.”

“The reasoning given for this curtailed supply measure is that the OMCs are losing ₹28 per litre on diesel and ₹8 per litre on petrol. “We are advised to restrain sale to new customers and cater to only our existing customers. Under these circumstances we request you not to ration fuel supplies to its dealers and to continue with normal supplies to avoid dry outs and inconvenience to the motoring public,” they said. 

A dealer in Tamil Nadu said that oil companies were using this time as an opportunity to collect amounts due to the respective companies. “Companies have stopped giving credit to dealers and are supplying fuel only after receiving payment,” the dealer said. 

Jude Mathew of the Tamil Nadu Independent Vehicle Owners Association said that such guidelines would only lead to a shortage in fuel supplies and disruption in services. 

Oil industry sources however refuted any such claims and said no instructions had been given to dealers to reduce supplies. Maybe in certain cases, dealers near border areas had been asked not to entertain SETC buses from other States and bulk industrial clients since they block the dispensing units for a longer time causing disturbance to ordinary motorists. 


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Printable version | May 21, 2022 5:41:33 pm | https://www.thehindu.com/news/cities/chennai/petroleum-dealers-write-to-centre-asking-not-to-restrict-fuel-supplies/article65442286.ece