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Politics : Rat's Nest - Chronicles of Collapse -- Ignore unavailable to you. Want to Upgrade?

To: Wharf Rat who wrote (8467)	8/21/2008 6:49:01 AM
From: Wharf Rat	Read Replies (1) \| Respond to of 24246

Curb on bulk purchase of diesel by non-transport sector urged N. Ravi Kumar CHENNAI: Oil marketing companies such as Indian Oil Corporation plan to approach the State government to assist them curb bulk purchase of diesel in barrels by customers, particularly by companies for power generator sets. This comes in the wake of the soaring demand for the subsidised fuel from the non-transport sector, which the oil firms cite as one of main reasons for the product running frequently out of stock at retail outlets in the recent weeks. Over the weekend, several outlets in and around the city ran out of diesel. Sources among the dealers say diesel dryouts have become common. For some of them such as the one on Durgabai Deshmukh Road and some in Maraimalai Nagar, the situation continued well into Monday morning. An official of Indian Oil Corporation also attributed the shortage to two holidays last week — Friday and Sunday — for the oil installations. A senior official of Bharat Petroleum Corporation Ltd said the diesel demand this month so far had seen a phenomenal over 60 per cent increase for the company, as compared to the corresponding period in 2007. N.Srikumar, Executive Director (Corporation Communications, Branding and Planning) of Indian Oil Corporation said while the genuine demand from the transport sector would be met, it would not be possible to make available the product for other uses, particularly where diesel is the main input raw material. The companies are now planning to seek the assistance of the State government to curb barrel sales. Though dispensing fuel, both petrol and diesel, into any other container other than a tank fitted to a vehicle is not permitted as per the rules, it has to be enforced by the State government. “Our sales force is not equipped to do this and it is not physically possible to supervise the sales continuously at every outlet,” said Mr. Srikumar. The companies have instructed dealers to avoid barrel sales. But bulk sale is attractive to the dealers as it is a cash sale unlike in the case of transport sector where nearly 60 per cent is on credit. The shortage has also made several dealers stop credit sales to transporters. hindu.com