We would like to bring to your notice certain matters which are deeply affecting our business as petrol pump dealers as a whole and the society at large is also suffering because of blended petrol causing distress for the consumers.
1. IMPROPER IMPLEMENTATION OF ETHANOL BLENDED PETROL (EBP)
Although definitely a step in the right direction for many reasons, the introduction of (EBP) by the OMCs have been implemented in a careless manner without due consideration to the technical aspects. Improperly blended EBP is highly hygroscopic, i.e. it absorbs water (from atmospheric humidity and rainwater seepage into the underground tanks at petrol pumps) which later settles out into a separate layer. This separate water layer in underground tanks as well as vehicle fuel tanks is the problem as customers extort compensation from Dealers for damage due to adulterating petrol with water and underground tanks have to be decontaminated both of which cause massive financial losses to Dealers. We have written previously on the subject but to no avail.
2. SHORT SUPPLY OF PRODUCT TO PETROL PUMPS
The other issue is the short supply of fuel to petrol pumps by the respective OMCs which is a long standing and perennial one and is invisible to others. A very large portion of our profitability goes in adjusting for the pilferage of fuel during transit
which can be as much as 1% of the amount of fuel loaded. For example, in a typical tank lorry carrying 12KL, it can amount to around Rs.12,000/-.
In regard to this, the consumer affair department vide memo no. 6923-CAD- 13013(12)/4/7/2018 dt. 27/11/2020 has discussed with OMCs regarding the implementation of use of Flow Meter, while delivering fuel to pumps from tanker.
In light of the above, we are of the firm belief that the OMCs have failed in their commitments to us as our Principals in ensuring supply of good quality product in accurate and full quantity which can be sold confidently to the public. The issue is now so critical and detrimental to our business that we are left with no choice but to start a state-wide agitation.