Oil PSU strike to hit refinery operations

MUMBAI: Refinery and oilfield operations across the country are likely to be affected from Tuesday as over 45,000 officers of 13 public sector oil companies launch an indefinite strike demanding immediate pay hikes.

Petrol pumps across the country and fuel tanks at airports have already been topped up, but oil company officials warn that shortages and long queues are likely if the strike continues beyond the second day.

“Our talks with the minister failed and we are on strike,” Ashok Singh, convenor, Oil Sector Officers Association (OSOA), told ET. The strike will begin at 6 am on Tuesday.

The employees are seeking periodic pay revisions every five year and immediate release of additional increments. Besides, officers also want 50% dearness allowance with immediate effect. Murli Deora, petroleum minister, was trying to persuade the officers from going ahead with the strike.

Some oil companies such as ONGC and HPCL have got stay orders from the Delhi High Court under the Essential Services Maintenance Act (ESMA) against the strike. It is not known if this would be enough to deter the striking officers.

A strike in the oil sector would mean a loss of over Rs 160 crore on oil sales and over Rs 17 crore on gas sales. Besides, aviation would be the worst-affected sector as there would be no officers at the airport for refuelling. A halt on aviation refuelling would cost the exchequer around Rs 200 crore per day. Oil company officials say that refinery operations would be hit as critical functions are manned by officers.

If the strike continues beyond Wednesday, the refinery may have to be shut down, they added. Restarting it would also take some time. Airports across the country have been told to top up their fuel tanks. Petrol pumps have also been asked to do the same. Senior officials at various oil companies have been told to report for duty.

But these measures would be effective only for a day or two. The strike is seen affecting Oil and Natural Gas Corporation (ONGC), Hindustan Petroleum Corporation (HPCL), Bharat Petroleum Corporation (BPCL), IndianOil Corporation, among others.