Petrol pump operators threaten strike on 23rd April 2012 Petrol Strike

Petrol pump operators today threatened to go on a one-day strike on April 23 demanding a hike in commission they get on fuel sales.

“It has been decided that all petrol pumps of public sector oil marketing companies in the country shall ob

serve one day protest closure in the first instance from midnight of April 22-23 till the midnight of April 23-24,” Federation of All India Petroleum Traders (FAIPT) General Secretary Ajay Bansal said here.

Further, FAIPT, which claims to represent dealers of over 40,000 petrol pumps in the country, will go on an indefinite strike from midnight of April 29-30, if their demands are not met.

He said the oil ministry has not implemented recommendation of its own committee that was constituted to go into the issue of commission paid to dealers.

The committee headed by Joint Secretary (Marketing) in Ministry of Petroleum and Natural Gas had recommended a dealer commission of 0.39 paise per litre on petrol and 0.17 paise a litre on diesel. But the ministry gave only 0.27 paise for petrol and 0.15 paise for diesel.

“Our demand for 5% commission on the invoice value of petroleum products has been turned down by the committee without any proper reason,” he said.

IOC seeks 50:50 partnership in RIL’s petrol pumps

IOC seeks 50:50 partnership in RIL's petrol pumps State-run Indian Oil Corporation (IOC) has proposed a 50:50 partnership to operate 1432 closed petrol pumps of Reliance Industries (RIL), having 15 per cent fuel market share by the closing date of March 2008.

Other firms including Royal Dutch Shell, Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) have also shown interest in partnership with Reliance.

The private firm suffered huge losses in early 2008 due to difference in retail price of petrol and diesel sold by public sector oil companies and other private firms leading to closure of RIL’s petrol pumps.

Meanwhile, a senior official of IOC said, “We would not like to comment.” He, however, said that company has already got approval from its board and final decision would be taken after weighing all pro and cons.

RIL will set up a data room to access financial proposals of interested parties and final decision would be taken by firm’s chairman, Mukesh Ambani.

Sources informed that IOC, having 17600 petrol pumps, wants equal partnership as it is not interested in portfolio investment while RIL wants 26, 50 and 74 per cent equity stake from retailers in the proposed joint venture.