Andhra Pradesh

Dealers’ consortium expresses concern over rationing

Oil Marketing Company dealers (fuel stations) have been reportedly asked to limit their sale of petrol and diesel to normal quantity by the Oil Marketing Companies (OMCs). Though the impact is not felt by motorists in the State, OMC dealers are concerned over the rationing of the supply to the fuel outlets.

Consortium of Indian Petroleum Dealers (CIPD) president M. Narayana Prasad told The Hindu that fuel was being rationed, and a letter has been written to the Oil Industry Coordinator (OIL) in Mumbai on the ‘diktat’ from OMCs.

Mr. Narayana Prasad and general secretary K. Suresh Kumar in the letter dated May 20, stated that OMC dealers were being pressured by the companies to be cautious in sales of petrol and diesel and that they should not sell more and above the normal sale which implied sale to new customers, including fleet, industrial or for generators, should not be entertained.

"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 sales to new customers and cater to only our existing customers. We request you not to ration fuel supplies to dealers and to continue with normal supplies to avoid dry outs and inconvenience to the motorists. Officers of the OMCs have been sending WhatsApp messages saying the situation is critical and will remain to be so till retail selling price (RSP) is increased by the government," Mr. Narayana Prasad said in the letter.

"We fear the situation in the field would turn chaotic and create law and order problems. This will also affect the channel partners' credibility. We request your intervention and call us for a discussion to find a solution," Mr. Narayana Prasad asked the Coordinator.


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Printable version | Jun 30, 2022 1:58:46 am | https://www.thehindu.com/news/national/andhra-pradesh/dealers-consortium-expresses-concern-over-rationing/article65442514.ece