With bulk LPG transport owners based in Namakkal, Tamil Nadu, threatening to go on an indefinite strike from July 1, oil marketing majors Indian Oil Corporation, Hindustan Petroleum and Bharat Petroleum have approached the Madras High Court.

They have sought a court direction to the Tamil Nadu Commissioner of Civil Supplies and Director General of Police to invoke powers under the Essential Commodities Act, 1955, to take steps to ensure uninterrupted supply of LPG products.

The Southern Region Bulk LPG Transport Owners’ Association and Southern Region Bulk LPG Transport Owners’ Association have announced an indefinite strike from July 1 demanding job orders for around 600 tankers from oil marketing companies. They claimed that new tenders floated in January 2018 would leave 600 trucks unused.

Since there was no positive response from the oil majors, they were forced to go on strike, they added. If the strike is carried out, over 5,000 tankers will go off the roads, disrupting LPG supply in the South.

The oil companies said the strike is illegal, and that the transporters were seeking to disrupt the operation/supplies from the terminals by not plying the trucks with the sole intention of having their ‘unlawful’ demands met.

Interim injunction

The petitions by the oil majors sought an interim injunction restraining the two tanker associations from going on strike, and making them ply their vehicles under the terms of the contract entered into by the transporters and the oil companies at all the southern locations.

The petitions also sought police protection at all the loading/unloading locations in the South.

Tenders row

The issue relates to the ‘All-India Bulk LPG Transportation by Road’ tender floated by the three oil marketing companies in January 2018.

The earlier tenders had been on a regional (South, North, East, West and North-East) basis for three years, and only those with readily available trucks were allowed to place quotes.

The 2018 tender had several new features. For the first time, State-wise tenders were floated, with six for the southern region. The requirements of bulk LPG trucks were derived based on the unloading LPG plants located in each State/UT, irrespective of intra-State and inter-State supply sources.

The new bulk LPG transportation contract is for a five-year period. Preference is to be given to trucks quoting floor rates (lowest rate of the price band) in the respective States.

A proposed trucks category was introduced, wherein a person can offer a truck without owning it on the date of participating in the tender (under General, SC and ST categories).

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