LPG supply might be hit as tankers go on strike
Thousands of LPG tankers went off the roads yesterday in the South and East in protest against new rules in the tender system. Those in the West and North are also likely to join in, Bulk LPG Transport Contractors Association representatives said. If the strike continues for three-four days, supply of LPG cylinders in the market is likely to be hit.
Most bottling plants acquire LPG through tankers
The Indian Oil Corporation (IOC) transfers LPG through pipelines to several bottling plants, including in Haldia, Balasore and Barauni, from where filled cylinders then travel to distributors and eventually consumers. But most of the supply happens through tankers. Roughly 22,000 tankers run across India, which will suspend operations if the strike spreads to other regions, said Association (Eastern India) executive committee member Bhupinder Gujral.
Proposed changes to the tender system has irked the Association
The Association is dissatisfied with proposed changes in the system. Earlier, tenders for trucks were floated zone-wise, so all tankers in the Eastern zone could supply LPG to West Bengal, Bihar, Odisha and Jharkhand. But according to proposals, tenders have to be floated state-wise. If the new rules are approved, it might deem thousands of tankers in Namakkal and Nagaland redundant, sources said.
Talks on with protestors to resolve issues
Oil companies are also reportedly planning to hire more high-capacity vehicles (21 tonnnes), but 95% of the existing ones in Namakkal are 18 tonnes. IOC, which said the impact might be "partial" if the strike continues, is in talks with protestors to resolve the issue. However, oil marketing companies haven't yet called any meeting with the Association, says Gujral.
