Oil cos will have full autonomy to select dealers, distributors

NEW DELHI: The political class has just lost a lucrative source of patronage. In keeping with the ongoing process of deregulation of the petroleum sector, all the government-appointed dealer selection boards were abolished on Thursday.
In other words, mantris and babus would no longer be able to dole out largesse in the shape of oil or LPG dealership in return for gratitude or more. Instead oil companies will now have complete autonomy to select dealers/distributors.
Until now, allocation of dealerships under the discretionary quota - often in the name of the handicapped or widows - was commonly used to dispense political favours.
The whole issue thretened to blow up into a scam when the Supreme Court passed strictures against a former Union Petroleum Minister. Although the minister was legally exonerated, the case only reinforced the public belief about politicians playing favourites and possibly making a killing in the process.
The dismantling of the APM has now set the stage for appointing dealers on commercial basis. The delear selection boards were constituted by the petroleum ministry and it comprised a chairperson and two members of the industry.
Although, the chairperson usually was a retired judge and one of the members was appointed by the government, these boards often had tainted track records where decisions were “politically motivated.�
Announcing the decision in the Lok Sabha on Thursday, Petroleum Minister Ram Naik said the allotment of LPG dealership will also be done by the oil marketing companies.