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Karnataka
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Bangalore
Quota system adds to diesel crunch
The system came into effect on July 1
Demand for diesel is growing at a rate of around 25 p.c.
BANGALORE: Petroleum companies have imposed quota system for distribution of diesel across the State even as a large number of outlets are facing shortage.
Several outlets in the State have gone dry. Many have received lesser allocation than the actual sales recorded in June.
However, the quota is not applicable in case of petrol. “The diesel quota came into effect on July 1, and we are actually receiving 10 per cent more than what we sold in July 2007. But the demand is very high. The companies have fixed a quota for each dealer,” B.R. Ravindranath, vice-president of Akhila Karnataka Federation of Petroleum Traders, told The Hindu.
Limited supplyCompanies were getting limited supply, and each State was getting only a fixed quota, he added.
Though the petroleum companies have fixed quota at 10 per cent more than the sales at the outlets during July 2007, the demand for diesel is growing at a rate of around 25 per cent. Nearly 4.75 lakh kilo litres of diesel is sold in Karnataka every month, of which approximately 75,000 kilo litres is sold in Bangalore.
Dealers have also received messages from the companies asking them to plan the indent in such a way that diesel outlets do not go dry. It is learnt that the companies have started monitoring the sale of diesel by the dealers on a daily basis.
A dealer from Mysore who chose to remain anonymous said: “Though I need 160 kilo litres of diesel every month, I have been allocated a quota of only 130 kilo litres. In fact, I am losing one kilo litre in sales every day due to the quota system.”
Owing to the reduced allocation, many outlets are refusing to sell diesel to outstation vehicles. “We prefer to sell diesel to customers who have patronised us,” he said.
There are reports that many people in the transport industry are hoarding diesel. Confirming that several people have approached owners of outlets for bulk sale of diesel, Mr. Ravindranath said, “We are distributing diesel to our regular customers, and have denied diesel to those who have come with request for huge quantities,” he added.
The companies were supplying diesel in such a way that the outlets would not dry up, Mr. Ravindranath said.
Growth rateMeanwhile, an official of the Indian Oil Corporation said that the growth rate in diesel was anywhere between 20 and 25 per cent, and the oil companies were distributing it despite the rise in prices of petroleum products and the losses suffered by the companies.
“We should know to whom we are selling diesel and we do not want to sell it to those who want large quantities, the official said.
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