Bulk diesel users queue up at retail points as OMCs raise prices

BL New Delhi Bureau | | Updated on: Mar 21, 2022

Transport workers association to protest diesel price hike on Thursday

Bulk diesel users, such as public transporters and logistics players, are queuing up at petrol pumps, or retail points, to top up on diesel after the oil marketing companies (OMCs) raised the price of the commodity by ₹25 per litre for bulk users. The hike is in line with the uptick in international prices.

Even though the retail prices of petrol and diesel have not been raised since November 4, 2021, experts point out that the raise will indirectly impact end consumers as bulk buyers include state transport corporations and transporters. Besides, the logistics industry, particularly third party logistics players (3PL), also do bulk purchases of the auto fuel for transporting goods across the country and the hike in prices will also impact them.

After OMCs raised the price of diesel for bulk users by ₹25 per litre, the cost of diesel for industrial users is now priced at ₹115 a litre in Delhi, while the rate in Mumbai is now ₹122.05 per litre. However, retail prices of the crucial commodity stands unchanged in Delhi and Mumbai at ₹86.67 per litre and ₹94.14 a litre, respectively.

“There is a massive surge of demand at fuel stations (retail outlets) due to increased delta of around ₹25 per litre between retail and industrial price of diesel, leading to heavy diversion of bulk HSD (Direct Customers) to retail outlets,” a spokesperson for Reliance BP Mobility (RBML) said.

There is also a very heavy lifting of fuel by dealers and both business-to-business (B2B) and business-to-consumer (B2C) customers, who have advanced their purchases, to top up their tanks and capacities in anticipation of price increase which is overdue, he added.

Record sales in March

“Due to this immediate surge there have been record sales in March 2022, which is putting strain on the entire logistics and supply infrastructure. This is further exacerbated by shortage of tank trucks and rakes due to sudden surge in demand along with limited availability of TT crew during the festive period across the industry,” the spokesperson said.

In spite of the challenges, Reliance is fully committed to meet the demand of its retail customers. Besides, RIL is also carrying out exports as per business as usual to meet its contractual requirements.

Union protest price hike

Meanwhile, the All India Road Transport Workers` Federation (AIRTWF) critised raising of prices for bulk diesel users adding that it is a “big blow” to the state road transport undertakings (STUs). The federation will protest against the move on March 24.

“This is highly condemnable. The enhancement will ruin the existing STUs. AIRTWF demands the central government to react and roll back immediately. AIRTWF also appeals to all the affiliated unions/ federations to observe protest day on March 24, throughout the country,” AIRTWF General Secretary KK Divakaran said.

“From February 1, the prices of diesel for bulk buyers has been enhanced from ₹2 to ₹6 in different States. Again now it is enhanced abnormally. This enhancement will lead to closure of the existing STUs in the country. This will not only destroy the STUs but the people of this country will be the worst victims particularly the poor and the unorganised workers who ought to travel daily in the buses,” he further added.

The Centre of Indian Trade Unions (CITU) also condemned the hike of ₹25 per litre on diesel for the bulk buyers. CITU said that it is another attack on the State Transport Undertakings (STUs) and other bulk users, the burden of which will be passed on to the mass of the people using public transports and such other services.

“It will further worsen the lives of ordinary people with Transport costs also rising enormously in the current phase of stagflation. It is another form of attack on the Public sector undertakings, particularly on Public Transport Undertakings as a part of its multi dimensional offensive to dismantle the public sector as a whole through privatisation or its new avatar Asset Monetisation Pipeline,” CITU General Secretary Tapan Sen said.

CITU appeals to all the public transport workers and mass of the people to join the forthcoming general strike on March 28 and 29 and make it a success as a befitting reply against this price raise and in defence of public road transport, he added.  

Published on March 21, 2022
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