Oil Marketing firms trying to resolve LPG transporters' strike

Protest by the transporters is strengthening it is expected to take a hit on the bulk LPG supplies

Oil Marketing Companies (OMCs) today said that, with the help of state government, it is trying to to restore normalcy in LPG distribution. The development comes four days after the LPG transporters' went on a strike in Tamil Nadu and Puducherry.

In a statement today, U V Mannur, state level coordinator for Oil industry in Tamil Nadu & Puducherry, said "the oil industry, with the help of state government is making all efforts to restore normalcy in LPG distribution. The oil industry also asked the transporters to comply with the tender conditions and follow transparent procedures of negotiations".

Meanwhile as the protest by the transporters is strengthening it is expected to take hit on the bulk LPG supplies to 48 bottling plants in southern region and would have an impact on product evacuation at import locations, since the truckers have refused to place the tank trucks for loading.

The LPG transporters have been on strike since January 31, effecting the supply of LPG to the customers.

In Southern region, the three OMCs -- Indian Oil Corporation, BPCL and HPCL have a fleet of about 3,200 bulk LPG tank trucks for moving about 250,000 MT of bulk LPG every month by road from supply source to various bottling plants, according to Mannur.

A new public tender through e-tender mode was invited on all India basis by the OMCs for a three-year term.

Mannur today said that in order to bring reasonable parity in rates across the country, the industry had conducted three rounds of negotiations with the bidders.

"But in all the occasions, the bidders did not comply with the negotiation process as per the tender conditions. Further, the existing transporters, incidentally who are also mostly the bidders, unilaterally withdrew their trucks with effect from January 31, leading to disruption of in supply of LPG to the general public," he said in the statement.

The commissioner of food and civil supplies, Tamil Nadu convened a tripartite meeting on Monday, involving the bulk transporters and OMCs. During the meeting, the SLC of Tamil Nadu appealed to the transporters to the withdraw the strike. It was also highlighted that resorting to agitation while negotiation was in progress was not a healthy practice.

Currently, the oil industry in southern region has 14 LPG bottling plants linked through pipeline and two plants receiving LPG by rail wagon movement. IndianOil has plans to lay LPG pipeline from Ennore-Chengelpet-Puducherry-Trichy- Madurai bottling plants. Similarly, a joint venture of Indian Oil and BPCL will be laying LPG pipeline from Kochi-Palakkad-Coimbatore-Erode-Salem bottling plants.