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Petrol Pumps in Guwahati staring at permanent closure

Barasha Das


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Guwahati: There is an impending crisis of fuel hovering over Assam, as the petroleum dealers are often calling for strikes and a petrol depot bandh as the latter’s issues remain unresolved. The latest strike by the North East Petroleum Dealers’ Association (NEPDA) was called on May 31, when the dealers did not buy their daily fuel from the oil companies. Although no scarcity of petrol or diesel has been reported in the city till the time of filing this report, the association has warned of such an impending crisis.

NEPDA has said that if their issues are not resolved soon, several depots will be left with no other option but to close down shop. It stated that over 80 percent of the retail outlets have been functioning at a massive loss.

The NEPDA has been threatening to go on indefinite strike from time to time if the oil companies do not respond to the demands of the associations soon. The protests come in response to the alleged unlawful practices of oil transporters and oil companies.

Rajib Goswami, president of NEPDA told Business Northeast that for the past few years, there has been a shortage in the delivery of oil from the company's terminal. “There is always a shortage of 150 to 200 litres of oil in the delivery tankers. This has been happening for the past 4–5 years. Also, the transporters are deployed by the oil companies and are in their service. They do not have any links with the dealers. All their grievances and wants should be addressed by the company.

“But for several months now, the workers have been demanding ‘trip allowance’ from the dealers for each delivery, which is unauthorized and not acceptable. Recently, the Assam Petroleum Mazdoor Union has even served us a notice stating that as the dealers are not paying proper trip allowance to their members, they will boycott the supply of oil to the petrol pumps if the matter is not resolved amicably. They are under the purview of the oil companies, and the companies should have taken the necessary action. But both parties are working amid some understanding unknown to us, "he said.

Additionally, the NEPDA alleged that despite spending crores of taxpayers' money the oil companies have deliberately halted the process of complete automation of petrol pumps. “We have been asking for automation but they have been strategically delaying, else the anomalies will be exposed.”

The Association has now demanded the government to conduct an inquiry into the issue. “The Chief Minister’s vigilance cell or the CID must conduct an enquiry as to who is attaining the benefits of the stolen oil." If they are supplying the dealers with less in every tanker, where is the deduced amount going? "Are oil officials involved in this scam?” questioned Goswami.

A 24-hour bandh of petrol depots was also called on May 13 as a protest against such policies.

Petrol Dealers’ are disappointed at the failure to recognise their contributions in fighting the pandemic.

“During the last 2 years of lockdown amid the pandemic, we have been working relentlessly." When the lockdown was announced, the Deputy Commissioner urged us to keep the petrol pumps open as essential services. With hardly a sale of 200 litre per day, we kept the depots open.  The expenses for functioning remained the same, "said Goswami.

The association stated that despite being on service throughout, petrol depots were not recognized as frontline workers, nor were they offered any benefits like other services functioning during the lockdown period.

Reportedly, retail outlets receive an average commission of Rs. 2 per litre of fuel sold. However, the commission has been stagnant without any revision since 2015. “Even after numerous appeals, our prayers are still left unheard. " "Now with the present issues, we get just about 11,500 litres of oil by paying for 12,000 litres in each delivery. ”

With such a minimal commission, reportedly, several low-selling retail outlets are incurring huge losses. “There is just about eight or ten high selling return on sales (ROS). The rest are all low-selling in Guwahati. " But the expenses are all similar. At this rate, most petrol depots in the city will be forced to close shop. "Let us also protest the closure,” opined the president of NEPDA.

Terminal Monitoring Committee formed by District Administration:

The NEPDA met with the District Commissioner of Kamrup (Metropolitan) on May 13. Following a meeting, a terminal monitoring committee has been formed under the supervision of a magistrate with representatives of NEPDA (Greater Guwahati Unit), the Legal Metrology Department, the Food, Civil Service, and Consumer Supplies Department, and the Police Administration. The committee will monitor any anomalies at the terminal.

Goswami said that the Committee report will take some time. But if the anomalies continue some extreme steps have to be taken by dealers.

Barasha Das