ROs may protest against IOCL
Source: The Sangai Express
Imphal, October 31 2022:
Retail Outlet (RO) dealers registered with the Indian Oil Corporation Limited (IOCL) may shut down their business and protest against the IOCL.
IOCL's daily market share in Manipur is around 400 Kis of petrol and 600 Kis of diesel whereas the VAT imposed by the State Government on petrol and diesel are Rs 19.56 per litre and Rs 10.078 per litre respectively.
As such, the State Government has been collecting VAT of Rs 3,12,96,400 from petrol and Rs 4,49,23,800 from diesel on a daily basis.
In case the IOCL RO dealers decide to shut down and protest against IOCL, the State Government would lose a daily income of Rs 7,62,20,200, sources informed.
In order to induct transporters for transportation of petroleum products to the State, the IOCL floated a tender in 2013.The tender was held in October 2016.However, the tender process was cancelled as the matter got entangled in a Court case.
A fresh tender was held in April last year and 30 RO dealers which joined the business anew were also selected along with others.
Subsequently, the qualified RO dealers purchased oil tankers after taking loans from banks.
In addition to issuing a letter of intent, the IOCL directed the qualified RO dealers to make a security deposit of Rs 50,000 each which was complied with.
But the matter was kept frozen at this point on account of the earlier Court case.
Notwithstanding the Court case, the RO dealers have been paying EMI for the loans they took from loans.
The 30 or so new ROs have been paying EMI of around Rs 30 lakh in a month and they are now facing serious difficulties in paying the EMI, said the sources.
They even requested the IOCL through the All Manipur IOCL Retail Outlet Dealers Association to pay their EMI but the IOCL has declined their request.
Nonetheless, the association has been negotiating with the IOCL to induct the oil tankers purchased by the 30 RO dealers as IOCL's transporters.
According to the sources, the IOCL has agreed verbally to take over the oil tankers as their transporters.
However, if the IOCL fails to take over these oil tankers, the RO dealers may shut down their business and protest against the IOCL, the sources added.