A solution to the cooking gas crisis that has gripped south India, as a result of the strike since March 1 by bulk LPG transporters, is again in sight with vehicle operators and oil marketing companies set to resume negotiations, with a preliminary meeting on Wednesday.
While N.R. Karthik, Secretary, Southern Region Bulk LPG Transport Owners Association, on Tuesday evening said a meeting with the tender committee, comprising officials of the companies, is scheduled for 3.00 p.m., sources in the oil industry said the meeting would help prepare the ground for resumption of negotiations on Thursday. Time, according to sources, is to be given to the officials to come to Chennai. Moreover, the Holi festival is on Thursday and it is a holiday in most of the States.
The decision of the Association, whose members also transport bulk LPG to Goa, comes in the backdrop of the bottling plants running out of stock and as a result millions of households and commercial cylinders consumers unsure of how long it would take for them to get refill cylinders.
A press release, issued by Indian Oil Corporation, said consequent to the strike bulk LPG supplies from various refineries and ports to the bottling plants of the oil marketing companies – IOC, BPCL and HPCL – have been disrupted in the four southern States.
The transporters have resorted to the strike, the second such this year, in support of their demand for higher transportation rates and induction of additional tankers by the oil companies. The release said the companies induct the vehicles on contract basis and a tender was floated by them on expiry of the earlier contract on October 31, 2011.
After the bids were opened, several rounds of negotiations were conducted with the transporters, the last one held on Saturday.
Lower rates
“It may be of interest to note that simultaneous negotiations with the transport contractors of Eastern region were concluded successfully at rates significantly lower than those demanded by the transporters in southern region,” the release said.
“The oil marketing companies have a well-established system for finalisation of transport contracts and these contracts also have an in-built clause that suitably compensates the transporters for any escalation in diesel price, which forms a major component of the operations cost. The fact that the OMCs had received offers [from the bulk LPG transporters] of more than the required number of vehicles sought by the companies in the tender is indicative of the remunerative nature of the business,” the release said.
While the companies wish to assure that every effort was being made to resolve the issue and restore normality at the earliest, “we regret the inconvenience caused to the LPG consumers due to the disruption in supplies,” the release said.
