CNG dealers threaten strike from November 2

“We have asked the state goverment,Mahanagar Gas Ltd,which supplies CNG to the dealers,to find a solution. We have decided to go on strike starting November 2 as there has been no response from either of the agencies,” said M Venkatrao,Vice President,Petrol Dealers Association. “It is very difficult to continue business as per the current commission rates which are 87 paise per kilogram of CNG sold. These rates were revised in 2006 and during this period the inflation and labour costs have risen substantially,” said Venkatrao.

Currently,the Mahanagar Gas Ltd has contracts with oil companies for the space at petrol pumps to set up CNG dispensing stations. Under the agreement,the oil companies get Rs 1.40 per kg for this space,of which oil companies give the petrol pump dealers 87 paise as commission.