IOC forcing dealers to sell branded fuels for vehicles

Vijayawada: The state-owned oil marketing company, Indian Oil Corporation, is allegedly forcing petroleum dealers to purchase branded fuels and feed them to vehicles users. This, dealers in Andhra Pradesh allege, is causing an additional financial burden to them.

The rate of fuel -- both petrol and diesel -- is high in AP compared to states like Telangana, Karnataka, Tamil Nadu and Odisha. At present, a litre of diesel costs Rs 99.12 and petrol Rs 111.33 here.

The IOC intends to promote branded fuels like petrol XP 95 and green diesel as they cost Rs 5-6 more than the rate for normal fuels.

The oil company is asking dealers, or pumps, to reduce the quantum of purchase of normal fuels and increase the purchase of branded fuels. It also asked them to set up a separate underground fuel tank to store and sell the branded fuels.

A petroleum dealer said, “We are being forced to purchase branded fuels by cutting down on the quantum of regular fuels. Even a written statement is being taken from us, stating that we shall purchase branded fuels, so as to avoid stoppage of supply of regular fuels.”

IOC says that the use of branded fuels will help reduce emission, facilitate smooth drive/ride and give vehicles extra mileage. Only a few vehicle owners are convinced about these while most are concerned about the cost factor, he added.

The dealers say that since last Diwali, excise duty on fuels was cut twice, resulting in a financial loss of Rs 3 lakh to Rs 40 lakh for a fuel station. While they are trying to overcome such a loss, the sale of branded fuels would add to their financial strain, they say.

Petroleum dealers are planning to take up the issue with the top brass of the IOC, seeking their intervention to resolve the issue and ensure there is no short-supply of fuels in the state.