On a day when state-run oil marketing companies (OMCs) like Bharat Petroleum Corporation (BPCL), Indian Oil Corporation (IOC), and Hindustan Petroleum Corporation (HPCL) launched the everyday update of fuel costs, minimum 1000 oil pumps across seven districts in Karnataka have closed shop challenging the move. This comes after fuel merchant affiliations cancelled their plan to go for “no purchase” of fuel taking after mediation from Petroleum Minister Dharmendra Pradhan.
“The move will wipe out the entire margins of marginal dealers. While oil marketing companies claim that 95 per cent of retail outlets is automated, only 5 percent are automated. At least 1000 petrol pumps are shut down in seven districts of Karnataka with no purchase and no sale, while some outlets in Bangalore too have opted to go for no purchase,” said Ranjith Hegde, secretary of Mysore Petroleum Traders Association.
Daily Fuel Rates Revised, Dealers Shut Shops at Karnataka State
All the real affiliations had cancelled their strike after the Government guaranteed an expansion in merchant commission from July. At the point when gotten some information about this, a senior authority from IOC disclosed to Business Standard,
“The rollout of daily pricing was done smoothly and there is no disruption reported so far.” Pradhan had assured the dealers that the automation of petrol pumps will happen as soon as possible and a committee is set to submit a report on this within a month.
“We have gone ahead with the daily pricing system and for small dealers, who sell in the range of 200-kilo litres, this move will wipe out margins. We are waiting for 15 days to see the results and then take a call on future action,” said B T Ram Kumar, joint secretary of the Consortium of India Petroleum Dealers (CIPD).
A stringent fine of Rs 5 lakh and suspension of offers and supplies for 60 days have been actualized in the revised rules for not working the petroleum direct in the mechanisation mode, or making automation dysfunctional, said a merchant from Delhi merchant’s affiliation. Before taking the choice of day by day amendment broadly, PSU oil organisations led a 40-day pilot to keep running in five urban communities, including Chandigarh, Puducherry, Jamshedpur, Udaipur, and Vishakhapatnam. Out of the aggregate 59,595 fuel retail outlets in the nation, near 54,000 outlets are under by state-run organisations like IOC, HPCL and BPCL. As indicated by merchants, just 10,000 outlets in the nation are automated now.