The Hindu : Tamil Nadu News : A ray of light at the end of tunnel ?

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Wednesday, Jul 02, 2008
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Tamil Nadu

Tamil Nadu

A ray of light at the end of tunnel ?

City Bureau

Hopes afloat of oil position getting easier

— Photo: R. Ravindran

WEARISOME WAIT: People standing in a long queue to get fuel outside the TVS petrol bunk in Chennai on Tuesday.

CHENNAI: “If they are able to do it now, what prevented them from avoiding the situation in the first place?” This was a question many motorists asked after the fuel crisis in Chennai and suburbs started showing signs of easing by Tuesday evening.

The non-availability of the fuel, particularly diesel, at most of the retail outlets of the national oil companies, saw hundreds of motorists stay awake on Monday night or queue up early on Tuesday to get fuel for the vehicles. In T. Nagar, for instance, many vehicles queued up outside a bunk as early as 4 a.m.

But hours after the State government held another round of discussion with officials of the oil marketing companies, there were signs of normality.

“We have started rushing loads to the outlets and the supply would continue till late on Tuesday evening,” said a senior official of Hindustan Petroleum Corporation Ltd. The need to pump in more stocks to the outlets was necessitated in view of the scheduled truckers’ strike from Tuesday midnight.

However, Chennai Petroleum Tanker Lorry Owners’ Association Secretary Naser said the body, whose members operate around 1,000 tanker lorries for the companies in the city, were not participating in the strike.

The intervention by the government also saw the oil companies agreeing to ensure availability of both branded and regular petrol and diesel at the outlets. Sometime ago, the Indian Oil Corporation, on behalf of the industry, had denied that the dealers were forcibly selling only the expensive branded fuel. Besides the cost element, some of the customers had also started raising doubts about the benefits of the branded fuel.

On what led to the crisis, a senior official in the industry said it was true that the more the oil companies sold in the backdrop of galloping input cost, the more they bled by way of under-recoveries.

But the shortage had to do more with supply chain management and the rising demand for fuel, particularly diesel, said a senior official of the Hindustan Petroleum Corporation Ltd.

According to him, based on the demand projection given by the companies, the monthly distribution, of the products among them, is prepared. It is known as centralised plan location and prepared in Mumbai. This is required as the oil companies depend on one another’s hospitality at different locations.

Noting that the present crisis was a result of Bharat Petroleum Corporation Ltd.’s demand for diesel more than the allotment, he said the crisis would ease by Wednesday. Chennai Port Trust chairman K.Suresh said a 9,500-tonne diesel consignment for BPCL was scheduled to arrive at the port on Wednesday. On Thursday, a crude oil consignment of 35,000 tonnes for Chennai Petroleum Corporation Ltd refinery would be coming. Decks have been cleared to receive the two vessels, he added.

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