Motor-fuels outlets divided over starting agitation to secure higher sales margin from oil companies

NEW DELHI: Motor-fuels outlets in India are divided over starting an agitation to secure higher sales margins from oil companies, with one retailing group deciding not to back next month’s protests its national rival had planned to mount pressure on the government.

The All India Petroleum Dealers Association ( AIPDA) said Tuesday that it would not support the agitation proposed by the Consortium of Indian Petroleum Dealers ( CIPD), which had threatened Monday to stop petrol and diesel purchases on May 10, and shut outlets every Sunday if sales margins were not raised.

The weekly Sunday off would start May 14, and from May 15, dealers would operate from 9 am to 6 pm to cut costs, the consortium had said.
Ravi Shinde of CIPD said the agitation would continue as planned even if the rival association did not support its move.

AIPDA would wait until May 15 for a decision from the state oil companies before deciding on the next course of action, Ajay Bansal, the chief of AIPDA, said on Tuesday. He said that AIPDA was in touch with Oil Minister Dharmendra Pradhan on the dealers' demand.

There wouldn't be much impact on the availability of fuel as the rival association didn't have many members, Bansal claimed. AIPDA claims to have 43,000 members, while CIPD claims to have 28,000 outlets attached to it. Both claims can't be correct as India has only about 53,000 dealers for motor fuels.

AIPDA and CIPD are the two national bodies that have expanded in the past 3-4 years. Both national bodies, in turn, have affiliated state associations. In many states, more than one association is active, and these in turn are affiliated at times to competing national bodies.