State CNG dealers shut shops for a day

Gujarat-based CNG pump owners observed a day's strike to protest against the reduction in the commission offered by the oil marketing public sector units (PSU) to them.

About 160 pumps across the state suspended sale of compressed natural gas (CNG) on Wednesday. The Federation of Petroleum Dealers' Association (FPDA) had called a day's strike following the oil PSU's decision to reduce the dealers' commission from 57 per cent to 50 per cent.

"The three public sector oil retailing companies have successively reduced the dealers' commission from 60 per cent earlier to 57 per cent and 50 per cent now. This is an injustice to the dealers as they are already burdened with high operational expenses. Rather than increasing their commission, the oil retailers have proposed to cut it down," said Kiran Patel, president, FPDA.

The three oil PSUs including Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation had reduced the commission rates for the dealers with effect from May 25, 2011. State-owned Gujarat State Petroleum Corporation (GSPC) is the main supplier of CNG to these companies.

Earlier, dealers were being given 73 paise per one kg gas as commission. FPDA has been demanding for a hike in the commission, while the oil companies not only rejected it but also decided to reduce the commission. Of the total about 200 CNG pumps spread across Gujarat, about 40 are owned by gas retailing companies like Adani Gas, Gujarat Gas and Sabarmati Gas. These pumps did not join in the strike. The daily CNG consumption in automobiles across the state is estimated to be around one million kg.

A delegation led by FPDA officials is scheduled to meet the top government officials on Thursday. "Since, the state-owned GSPC is the main supplier of CNG to these companies, we have taken up the issue with the state government. A meeting is scheduled on Wednesday with the principal secretary of energy department in this connection," Patel said.