To protest against the daily dynamic pricing model of petrol and diesel, the industry body of petrol pumps owners- All India Petroleum Dealers’ Association (AIPDA) has called for a nationwide no-purchase agitation on July 5. Further, the AIPDA has also announced a ‘no purchase-no sale’ agitation on July 12 to press their demands for the same.
The protest is mainly against the failure of oil marketing companies (OMCs) that include Indian Oil, Hindustan Petroleum and Bharat Petroleum to install 100 percent automated system at the pumps and lack of transparency in the daily fuel price change method. It has been reported that the AIPDA had a meeting with the oil marketing companies (OMCs) where statistics of losses incurred due to daily price mechanism were presented to the OMCs.
“We had a stormy three-hour meeting with oil marketing companies (OMCs) on June 29. The OMCs had agreed with us and had assured that price protection needed to be given”, AIPDA spokesperson Ali Daruwalla was quoted by Indian Express. Daruwalla further said that based on AIPDA representation, the Union Petroleum Minister Dharmendra Pradhan had also directed OMCs to go beyond the Apporva Committee report and give dealers a fair margin and fulfil their demands by July 30.
Who is supporting the nationwide protest?
Protesting against discrepancies in the daily pricing of petroleum products, petrol pump dealers from across the nation are taking part in the protest. The Karnataka State Federation of Petroleum Dealers (KSFPD) will support the protest call given by the All-India Petroleum Dealers Association (AIPDA) with regard to daily price mechanism of petroleum products. Meanwhile, Telangana Petroleum Dealers Association founder N Dinesh Reddy was quoted by Economic Times saying that the government should make sure that the dealer’s commission percentage is intact despite the daily price change. If our demands are not met, the dealers will close petrol bunks and stop the sale of fuel from July 12 onwards.”
West Bengal Petroleum Dealers’ Association President Tushar Sen was quoted by IANS saying, “Our national body AIPDA has called the nationwide strike on July 12. Ahead of that, we won’t purchase any oil on July 5 as a mark of protest”. Guwahati unit of North East India Petroleum Dealers’ Association (NEIPDA) among others is also a part of the protest.
Why are petrol pump dealers protesting?
After the roll out of the dynamic pricing system across the nation from June 16, petroleum prices have been on a downslide due to which small dealers are facing the crisis. The government and petrol pump dealers had agreed on a daily pricing system. Before June 16, state-run oil marketing companies (OMCs) revised retail fuel prices every fortnight on the basis of global crude oil prices. Dealers are of the opinion that they are not against daily revision of fuel prices but want the government to ensure that their commission percentage is intact irrespective of the price going up or downwards on a daily basis. Since the demands of the dealers are not met; they have announced a nationwide protest.
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