Date:18/04/2005 URL: http://www.thehindu.com/2005/04/18/stories/2005041812420700.htm

Tamil Nadu - Chennai

Petroleum dealers to go on strike from today

N. Ravi Kumar

Company-owned-company-operated outlets will function Company-owned-company-operated outlets to function

CHENNAI: Hectic Monday morning and your vehicle is short on fuel? Drive into one of those ever-increasing number of petrol stations, fill up the tank and proceed to work.

But, it would not be that simple this Monday as petroleum dealers across the country are on strike demanding more commission.

The trade leaders on Saturday evening expressed confidence that the 2,250 petrol stations across Tamil Nadu, including some 180 in and around Chennai, would remain closed and there would be no sale of automobile fuels.

Senior executives of the national oil marketing companies, however, say that the company-owned-company-operated (COCO) retail outlets will function. Though the number of such outlets is small, they may help out motorists.

Further, sources in the oil industry do not discount the possibility of dealers appointed recently staying clear of the strike to avoid incurring the displeasure of their principals — the national oil marketing companies.

But with the majority of the petrol stations likely to remain closed, the possibility of vehicles lining up for fuel could result in more transaction time.

Motorists say these are times when consumers should stay alert. Impatience to leave could see the motorist being short-changed and petrol pump attendants in their eagerness to meet the demand could dispense fuel without re-setting the pump meter to zero.

M. Kannan, president, Tamil Nadu Petroleum Dealers Association, however, says the token one-day strike would not result in any significant loss to the stakeholders in the business, including to the tax collections for the State Government.

"Most of the petrol pumps have been witnessing a steady stream of customers this evening... they would have ideally filled-up the fuel on Monday."

The strike was the last resort for the dealers, who had been demanding an increase in the commission for a long time to meet the rising expenditure on bank charges, staff salary and electricity bills. The frequent hike in petrol and diesel prices also translated into more investment for them. The dealers, who get Rs.707 on every kilolitre of petrol and Rs.425 on a kilolitre of diesel as commission, favour a new structure under which they get five per cent on the cost of the products.