Petroleum dealers fear of ending up with loss on the stock on hand in the event of a reduction in petrol and diesel prices were contained to some extent with the oil tanker drivers strike on Tuesday resulting in a customer rush for petrol and diesel.
Though unintended it is likely to help cut down losses if the fuel prices are slashed immediately, a leader of the petroleum trade said. Any decision on revising prices of widely consumed petroleum products such as petrol and diesel, however, are taken only at the highest level. Little is known until the new rates are announced, he hastened to clarify on the lack of information about such changes with the dealers.
The strike, which resulted in motorists queuing in front of fuel outlets in many States across the country, including in the twin cities of Hyderabad-Secunderabad, also caused traffic snarls on many roads and eventually led to some of the outlets declaring stock out. The drivers of the tanker lorries on contract with the national oil marketing companies, some of whom are owners of the vehicles, were protesting against the new stringent provisions introduced against those accused in hit-and-run cases.
The agitation that threatens to hamper operations across various sectors if it intensifies comes close on heels of a body of petroleum dealers’ appeal to the Prime Minister and national oil marketing companies they represent against abrupt reduction in petrol and diesel prices. Suggesting instead a phased reduction, the Consortium of Indian Petroleum Dealers (CIPD) cited the “substantial financial setback” the traders suffered when fuel prices were slashed in November 2021 and May 2022 on account of excise duty rate change.
In a letter to the oil companies on January 1, the CIPD expressed dismay at the contract tank lorry crew resorting to the strike. “We hereby state the dealer federation or the State association is not in any way responsible for this agitation. We would co-operate and support the OMCs in bringing about normalcy in supplies,” CIPD president Uday Lodh said.
Avoid panic buying
Senior officials of oil companies in Telangana said the State Civil Supplies Department was briefed about the strike. After the department and police officials met drivers, vehicles belonging to the dealers were allowed to ply followed by others.
Appealing to customers not to panic, a senior official of Indian Oil Corporation said some 250 tanker lorries, of the around 350 that are filled usually daily, were despatched with products from the company’s terminal on the outskirts of Hyderabad.
In the facility at Ramagundam, which usually operates till 5 p.m., the company was planning to continue fuel filling operations till around 10 p.m. The situation with regard to fuel despatches is expected to be better on Wednesday. LPG distributors usually have sufficient stocks and the focus will also be on refill despatches from the bottling plant, the official said.
