Fuel Trucks Strike in Kerala, IOC Clarifies

KOCHI:
IndianOil is committed to reaching fuel 24×7 to all customers. At Kerala IndianOil enjoys a 48% market share with 900 fuel outlets out of a total number 1900 fuel outlets in the State. Given below is a statement of facts to highlight the reasons behind why fuel outlets in the State are going low on inventory and running out of fuel in many places.
IndianOil floats public tenders (PT) every three years to select Tank Truck vendors for transportation of petroleum products from its depots and terminals to fuel outlets. A public tender for the same was floated during July 2016.
The tender floated covers TTs owned by our Dealers and Contractors (non-Dealers). A fresh, new, non recognized Committee called “BPCL, HPCL, IOCL Dealers, Transporters and TT Crew committee”, demanded that the tender be cancelled / modified failing which they would resort to strike and stop loading of TTs from Depots / Terminals (fuel outlets would not get petrol/diesel). Some of their key demands tabled include:
The transportation rate should be hiked to Rs.3.50 per kilolitre per kilometre from the present existing rate of Rs.2.02 per kl per km.
The tender should be floated by all the three oil companies together and not individually.
The safety fittings prescribed as mandatory in the tender should not be insisted upon and if required, IndianOil should provide the same in their TTs at IOC’s cost.
Single TT owners are debarred from the Tender and this condition should be withdrawn.

IndianOil’s response to the above are as follows:

At the current Rs.2.02 per kl per km, the TT vendors get paid Rs.40 per kl per km; with their demand to hike it to Rs.3.50 per kl per km, they are looking at a margin of Rs. 77 per kl per km. Any public passenger transport vehicle charges anywhere between Rs.7 to Rs. 12 per km only. Such an increase in per kl per km rate would make fuel prices costlier due to increase in transportation costs.
The oil companies are CPSUs and fall under the administrative control of the Ministry of Petroleum and Natural Gas (MOPNG). Such Tenders are floated by Oil companies individually as per location loading points capacity and need for number of Tank Trucks. This is the practice for all oil companies across the country.
With Automation of supply points under way to increase customer convenience, transparency and speed of fuelling , safety features in tank trucks are imperative and any vendor is required to adhere to safety norms as per tender formalities.
The tender requires any tenderer to have a minimum of 5 TTs out of which atleast 3 have to be owned by the Tender and the balance can be attached vehicles. Single TTs
create a challenge in terms of vendor management.
It may be noted that this tender has been called off/deferred, twice earlier to enable the Committee to call off their strike, ensure smooth fuel operations, considering national security and as per discussions and highlights from State Government.
The Committee has gone on strike for past two days and fueling operations halted at two depots. Floating the tender is essential to select tank truck vendors. The said Committee is stalling the tender process, by not participating in the tender and striking insisting that the tender be floated as per their demands.