Petroleum dealers in Telangana, like their counterparts in several states across the country, went ahead with a ‘no purchase’ protest on Tuesday in support of their demand for an increase in commission.
They are also demanding a mechanism that will ensure against loss on sale of petrol and diesel in hand, if the excise duty on fuel is reduced. The immediate trigger for this demand was that left dealers in ‘huge’ losses across the country, when the Center on May 21 cut excise duty on petrol and diesel by ₹8 and ₹6 per liter respectively.
Telangana Petroleum Dealers Association president M. Amarendra Reddy claimed about the protest, “It was a success, which was attended by an estimated 3,500 petrol pumps in Telangana. Because of the decision not to put indents for fresh supplies,” he said. The number of retail outlets that have dried up was not high, he said, adding that most of the petrol pumps were stocked on Monday.
While customers were not put to hardship, a clearer picture of the no purchase movement will be clear on Wednesday evening if fresh supplies to outlets take time, a senior oil industry official likely did not discount. The official, who did not wish to be named, said oil companies are likely to avoid such a situation by operating their facilities round the clock wherever possible.
Some outlets in Hyderabad were reporting stock outs in the past few days, something that was attributed to a change in the policy of HPCL and BPCL to supply products on credit to dealers. The trade has been accusing oil companies of rationing the product, especially diesel, as more bulk consumers for whom the price is around Rs 25 a liter higher, are filling up at retail outlets.
the tension remains
Tension prevailed outside some facilities of oil companies, including on the outskirts of Hyderabad, as petroleum dealers gathered in the vicinity and allegedly tried to block fuel trucks from leaving the installations. Some dealers had to remove the police, resulting in anger and heated arguments. No case was registered and the dealers were released, Mr Reddy said.
Regarding the further course of action, the leaders of the association said that limiting the working hours of shops and switching off lights in the evening can be considered.