PM to meet Deora, oil execs today to resolve crisis

The strike by the oil company executives under the umbrella of the Oil Sector Officers Association (OSOA) has brought the country to a grinding halt with over 90 per cent of petrol pumps across the country running dry.

Ajay Bansal, general secretary, Federation of All-India Petroleum Traders said "Only HPCL petrol pumps are running, but they would be out of fuel in the next three hours, aggravating the situation further".

Petroleum minister Murli Deora along with some oil executives is scheduled to meet the Prime Minister Manmohan Singh today in his bid to resolve the current crisis.

With the strike entering, Day three over 90 per cent of the country’s petrol pumps have run out of fuel and affected power generation in government-owned power companies.

“The problem manifested itself much quicker than expected because the petrol pumps were low on inventories in anticipation of fuel price cuts. The truckers’ strike, which entered its third day today along with the oilmen strike will increase the hardships of the common man,” said Krishan Kalra, secretary-general, PHD Chamber.

Indian Oil and Bharat Petroleum Corp had asked their employees in Maharashtra to report to work today as the government has invoked the provisions of the Essential Services Maintenance Act (ESMA), which restrains workers from going on strike.

However, as of 1010 hrs IOC officers had not reported to work today despite the government invoking ESMA.

In Maharashtra, the 650-Mw Uran plant of the state-owned Maharashtra State Power Generation Company (Mahagenco) was shut down. The state is already reeling under a power shortage of 4,500 Mw to 5,000 Mw, resulting in power cuts between 3 and 12 hours in urban, semi-urban and rural areas.

The central government-owned Ratnagiri Gas and Power Private Ltd’s (RGPPL) generation, which had dipped from 650 Mw to 300 Mw on Wednesday due to non-availability of gas, is now working at full capacity after RGPPL managed to source the gas from spot market on Thursday, said an official from the state-owned power distribution company, Mahadiscom.

So far, 17 gas-based urea plants have been shut down. “The strike is affecting production. This will lead to shortage of fertiliser and the country will have to import fertiliser to meet the domestic demand,” said Ajay Shriram, Chairman and Managing Director, Shriram Fertilizers and Chemicals.

Mahanagar Gas (MGL), on the other hand, has stopped the supply to the industrial, commercial and CNG segments in a phased manner, for ensuring supply to the domestic consumers. This has led to closure of over five restaurants in Mumbai with more shutdowns in the offing, said the Federation of Hotel and Restaurants Association of India. MGL sources gas from ONGC’s Mumbai High fields.

The oil company executives under the umbrella of the Oil Sector Officers Association (OSOA) began their indefinite strike on Wednesday demanding higher wages.