The Hindu : Tamil Nadu / Chennai News : Bulk transporters’ strike has put “bottling plants in deep water”

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Tamil Nadu

Tamil Nadu - Chennai

Bulk transporters’ strike has put “bottling plants in deep water”

Special Correspondent

CHENNAI: With a crippling product shortage staring their bottling plants in the face following an indefinite strike launched by bulk liquefied petroleum gas tankers in southern region, oil marketing companies want the State government to intervene in resolving the issue.

Stating that the three companies have briefed the State government and the Union Ministry of Petroleum and Natural Gas about the situation, a senior official of Indian Oil Corporation said government’s intervention would be imperative if the transporters stuck to their position.

The bulk LPG transporters, affiliated to the Southern Region LPG Bulk Transport Owners Association, have been on strike since the midnight of December 31 demanding an increase in the transportation charges by the oil companies, which finalise the contract on an industry basis. With Namakkal serving as a hub for such heavy vehicles, the oil companies want the State government to intervene.

Sources in the industry said 60 per cent of the LPG supplies to the bottling plants in the region, from the refineries and the import facilities, were by road. While the bulk LPG available at MRPL and CPCL would suffice to meet the bottling demand for five to six days, the stock position at the bottling plants in Madera, Troche and Illayangudi in Tamil Nadu, Quilon in Kerala and Cuddapah in Andhra Pradesh was grave.

Coming ahead of the popular harvest festival in the region, the strike induced shortage could affect several hu/ndred thousand users. The three companies have a customer base of nearly 3.5 crore.

The official said three rounds of talks had failed with the transporters sticking to the demand for a transportation charge at the rate of Rs.2.89/tonne/km. As per the contract, which expired on October 31, 2008, the rate was Rs.1.58. The oil companies have allowed the tankers to operate until the new contract is finalised.

In northern region, the bulk tanker owners have agreed to a rate of Rs.1.86.

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