Petrol pumps not to buy fuel from June 16

Pump owners protest against daily pricing of petrol and diesel

Petrol-pump owners in India have decided not to purchase fuel from June 16 in protest against the “unilateral” decision of the government to revise fuel prices daily all over the country.
 
Though the associations concerned are not terming it a strike, they are saying that “no purchase” from June 16 means petrol pumps are likely to go dry from the day their stocks are exhausted. “It is not a strike, but there will be no purchase of petrol or diesel, starting from June 16,” Ajay Bansal, president, All India Petroleum Dealers' Association, told Business Standard.
 
According to industry figures, India has about 57,000 fuel retail outlets, of which state-run Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation have a combined network of close to 53,000 outlets.

 

Currently, Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation review retail fuel prices every fortnight, taking into account the global crude oil prices.
 
The announcement of daily price revisions came after a successful trial run starting from May 1 in five locations — Pondicherry, Chandigarh, Jamshedpur, Udaipur, and Visakhapatnam. Even private fuel retailers like Essar Oil and Reliance Industries too followed the system in these cities.
 
The dealers are worried because of the declining stock value, and are demanding an increase in the dealer commission, which is 2-3 per cent now. According to sources, oil-marketing companies are likely to take a call on dealer commissions by June 30.

 
“Daily price revisions of petrol and diesel will make retail prices more reflective of the current market conditions, minimising the volatility in the retail selling price. Further, it will lead to increased transparency in the system. This will also enable a smoother flow of products from refinery and depots to retail outlets,” IOC had said in a statement last week.