Pvt oil tankers to boycott transportation of HPCL products

The association said this security deposit was primarily aimed at pushing small bidders out of contention. “Nearly 90 per cent of the owners own just one tanker. How can they put in five lakh even before loading the products,” Bal asked.

In addition, the company had also reduced the rate per kilometre from 70 to 56 paise for transportation, thereby turning a 1994 agreement between the association and the company on its head. “We had agreed on a minimum of 56 paise/km five years ago, which would increase according to the increase in fuel prices,” stated Bal.

The reason for lowering the rate was the bid by nine tanker firms at 56 paise/km. “Our own members are responsible for this mess, but instead of awarding them the whole tender, HPCL is trying to force the rest of us to work at that rate,” said Rajeev Mattoo, treasurer of the association.

Following the cue of HPCL, Bharat Petroleum Corporation Ltd (BPCL) had recently sent a letter to the association asking why their products should be transported at a higher rate. Both companies being rivals in the industry, the cost of transportation offers HPCL a huge advantage while pricing its products in the market. “If all oil companies follow the trend, then how will we survive,” asked K C KHandelwal, general secretary of the association.

In the first phase of the agitation, the association has warned that its members will refuse to carry HPCL products. And if the company does not reconsider its decision, then the association would ask tankers all over India to stop using HPCL products.

HPCL officials, however claimed that the company had nothing to do with the fixing of the rate of transport. “We can only call for the tender, we are not responsible for the response. If a few parties feel that they can operate at lower rates, we will only welcome them,” said a company spokesperson.