Petroleum dealers slam oil companies, demand transparency

Ranchi: The South Chhotanagpur Petroleum Dealers’ Association has demanded transparency and better communication from oil marketing companies (OMCs), questioning the ongoing fuel crisis across the region.

Raising concerns over a severe communication gap amidst the ongoing tensions in West Asia, the association questioned why fuel stations are running dry when govt and corporate offices repeatedly claim there is no shortage of stock.

Addressing the media after the association’s annual general meeting on Monday, which saw the participation of over 200 dealers from Ranchi, Gumla, Lohardaga, Simdega, and Khunti districts, association chairperson Rajhans Mishra slammed OMCs for shifting the blame onto dealers. Corporate entities have allegedly accused dealers of diverting fuel to bulk consumers to artificially boost growth.

“Everything is automated now. If companies suspect a particular dealer of unauthorised bulk supply, they should identify and penalise them. Why should the entire dealer community suffer?” Mishra said.

He clarified that an annual growth of 20 to 25% is standard. “Moreover, if neighbouring stations run dry, the remaining operational pumps will naturally witness a surge in sales. This cannot be misconstrued as bulk supply,” he added.

The region has over 290 functional fuel stations, many facing severe operational hurdles. Dealers voiced strong resentment against the revised credit policies of the oil majors. Previously, companies extended credit, levying an 18% interest rate on delayed payments. Not only has this facility been abruptly suspended, but dealers are now facing immense supply delays.

Mishra revealed that despite advance payments by dealers for multiple loads, supply arrives only after three to four days. “If companies charged us heavy interest for delayed payments, shouldn’t they pay us interest when they fail to deliver fuel on time?” he said.

Another major flashpoint is the conflicting mandate regarding fuel sales in containers. OMCs have strictly restricted sales to Petroleum and Explosives Safety Organisation (PESO) certified jerrycans.

“Consumers waving the local directive demand diesel in standard containers, but we cannot comply due to the strict PESO mandate. There are only five to six manufacturers of PESO-approved containers in India, leading to an acute shortage. Caught in this crossfire, dealers face the public wrath,” Mishra said.

The association has urged Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited to work in tandem to bridge the widening supply gap and improve operational transparency.

“We demand immediate clarity and transparency. As dealers, we are the direct interface with the public, and we bear the brunt of public anger whenever there is a supply failure,” Mishra said.