TODAY -

BPCL stares at grim prospect
Source: The Sangai Express

Imphal, July 21 2016: Although Bharat Petroleum Corporation Limited (BPCL) does share certain percentage of the State's oil market, BPCL is unlikely to capture any substantial portion of the oil market in the State in the near future.

Earlier, NRL was supplying fuel to the people of Manipur as a private firm before it was merged with BPCL which is an undertaking of the Government of India.

It is the Indian Oil Corporation (IOC) which is enjoying the lion's share of the State's oil market in which BPCL shares a small percentage.

There are some oil pumps of ESSAR too in the State but their supply rate is minimal.

Sources informed that there are 11 oil pumps of BPCL in Manipur including one at Jiribam.

On the other hand, there are 71 oil-pumps of IOC and they are spread all across the State.

Even though BPCL's fuel are highly demanded in the State, it could contribute only 40.3 per cent of the total quantity of fuel consumed in the State during 2015-16.The larger share was contributed by IOC.

IOC, being the oldest petroleum distribution company in the State, has already consolidated its market shares.

This is one major factor for the variance in market shares.

NRL was merged with BPCL as it was running into huge losses.

However, even after the merger, BPCL did not take up any initiative to expand its market share in the State.

With BPCL suspending shipping of fuel into the State since July 1, all its oil pumps operating in the State are dry now.

Transportation of fuel was suspended because the transportation charge was too low, the sources informed.

A few years back, transportation (of oil) was handled by BPCL's own transporters but oil pumps raised many complaints against the transporters.

Subsequently it was agreed that oil pumps would transport fuel using their own tankers.

It has been almost three years since BPCL oil pumps started shipping fuel using their own tankers.

However, the transportation charge has not been revised and the same rate which was in vogue years back is still applied.

With all their oil pumps running dry for several days, BPCL Deputy General Manager came and inspected the situation yesterday.

Due process has also been initiated to hold tender for selection of transporters.

In the meantime, until the tender process is completed, the existing transporters may be instructed to start transportation of fuel or an alternative arrangement may be made, informed the source.

One way or the other, it is essential to ensure interrupted supply of fuel to the people of Manipur and promote healthy competition among different oil marketing companies.

The Government and all relevant authorities need to pay attention to this aspect, they added.


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