K'taka fuel dealers oppose move to open new ROs

BENGALURU: The Centre’s transfer to open new petrol shops (RO) has gained a backlash from petrol pump homeowners in Karnataka, who rue that the expansion of ROs would wreck their trade.
A delegation of petrol pump homeowners on Friday called on leader minister H D Kumaraswamy and suggested him to forestall new ROs from arising within the state.


“We asked the CM to prevail upon the Centre to drop the proposal of opening new petrol pumps. He responded definitely and assured of doing the considered necessary,” mentioned Ok M Basave Gowda, president of Akhila Karnataka Federation of Petroleum Traders (AKFPT).

The state-run oil advertising and marketing corporations (OMC) have decided to open 65,000 ROs cumulatively and called for programs from the homeowners to arrange the same.

The transfer has surprised the marketplace as there are 54,000 petrol pumps throughout India and the new ROs would simplest add to the litter while the call for is regularly declining.

In Karnataka, there are four,000 petrol pumps and the new proposal would add 5,300 to the existing lot.


The petrol pump homeowners are in particular restive in regards to the declining call for over time. While the typical sales recorded in 2012 used to be 170 kilo litres according to petrol pump, it has decreased to 120 kilo litres in 2018.


“The aid in call for is due to more than a few reasons including the access of personal avid gamers who've over nine,000 out lets. And extra ROs would add to the sluggishness,” mentioned Gowda.


While it takes around Rs 16 crore to arrange a petroleum pump in urban spaces and a minimum of Rs four crore in rural spaces, the homeowners would get fee Rs 3.19 according to litre of petrol and Rs 2.30 for a litre diesel and the trade could be unviable if extra petrol pumps are added.


“The Centre is announcing that the new ROs would create jobs. On the opposite the transfer would wreck jobs as many petrol pumps would shut as call for would fall further,” mentioned a retail broker.
K'taka fuel dealers oppose move to open new ROs K'taka fuel dealers oppose move to open new ROs Reviewed by kailash soni on December 08, 2018 Rating: 5
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