Tankers' strike may hit LPG supply all over south India

MANGALORE: The entire south India could face a severe shortage of Liquefied Petroleum Gas (LPG) as the Southern Region Bulk LPG Transport Owners’ Association, transporting LPG from the three oil companies in Mangalore, has withdrawn its bullet tankers from service on Friday.
The strike will affect LPG supply in Karnataka, Tamil Nadu, Andhra Pradesh and Kerala. The strike call was given following the oil companies — BPCL, IOCL and HPCL — refusing to fulfil the demands of transporters for an increase in transportation rates. Speaking to the ‘Sunday Times of India’, Mummudiarasan, member of the Association, said the refusal by the oil companies to settle the contract issue amicably had resulted in this unfortunate situation. He said though the strike was called from November 1 when the three-year contract ended, they had withdrawn hoping for an amicable settlement with the oil companies. In the second week of November, IOC had agreed for 8.5 per cent hike from the last contract terms, but HPCL and BPCL did not budge.
The transporters confined their work only to the IOC load. On December 16, HPCL and BPCL called the transporters for talks. An agreement was reached for an amicable settlement and transporters started carrying the cargo of all the three companies. But in a sudden volte-face, the IOC also refused to pay the agreed hike on December 30, toeing the line of other two oil companies. From Friday, the transporters refused to lift the consignment from oil companies. Mummudiarasan said the hike in diesel, spares, tyres and insurance warranted a minimum hike of 25 per cent and they were willing to settle for 18 per cent. “When IOC agreed for 8.5 per cent hike, we agreed in the interests of the nation, but their denial later has brought about this situation,’’ he claimed. Mummudiarasan also said earlier from 1986, the oil companies had hiked the rates by 12 to 15 per cent after the end of each contract.
This time onwards, the companies were trying to lower the contract rates which was not acceptable as the running cost was escalating by the day, he maintained. “Moreover, we carry hazardous cargo and have to maintain the trucks in good condition which is costly,’’ he added. This imbroglio is likely to escalate the demand for LPG in all the three states, including Tamil Nadu as the Chennai refinery capacity hardly meets the demand of that state itself.
As of now, there are more than 4,500 bullet tankers parked near Bala in Surathkal. At least 300 LPG tankers carry LPG from the three oil companies to four states daily and if the situation is not corrected in a couple of days, a severe LPG crisis could grip south India. Attempts to contact the three oil companies for comments were not fruitful.