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LPG tanker operators threaten strike

Our Bureau

COIMBATORE, July 1

THE LPG distribution is South India is likely to be hit with the LPG tanker operators threatening to launch a strike if the three major oil companies did not settle the issue of payment of dues to the transport operators running into several crores of ru pees by July 2.

The tanker operators were sore that though the issue had been brought to the notice of the top brass of the oil companies several times, the LPG tanker operators have not been paid the contracted amount for nearly two years.

Speaking to Business Line, Mr K. Sundarrajan, Secretary, Southern Region Bulk LPG Transport Owners Association, Namakkal, said the three oil PSUs- BPCL, HPCL and IOC- were to make the payment for transportation of LPG within fifteen days after presentati on of bills by the operators.

But for the past twenty months _ since Nov 1999 _ the three oil majors have defaulted in making payment to the LPG tanker owners. No reasons were given for not making the payment to the tanker operators who were meeting the cost of operation, including s alary for the lorry crew and fuel cost, from their own pockets.

Mr Sundarrajan said it was difficult to make a precise estimate of the payment due from the oil companies to the LPG bulk tanker operators. But from the details collected from a handful of operators in Namakkal showed that the oil companies owed to these operators alone close to Rs 8 to Rs 9 crore and the cumulative payment due would be substantial.There were around 700 members in the association, owning about 2,500 vehicles, he said.

He said the association has set a deadline of July 2 for the oil companies to call the association leaders for a discussion and settle the issue. Any failure on the part of oil companies would result in the association members launching a strike.

The association members operated their vehicles in Tamil Nadu, Karnataka, Andhra Pradesh, Kerala, Goa and Pondicherry and LPG transportation in this region would be hit if the association went ahead with the strike move, he said.