CHENNAI/NAMAKKAL: Raising concerns among the general public, 3,200 LPG tanker owners went on strike across the state on Saturday demanding higher transportation rates from the public sector oil companies. Cooking gas supply in the city and the outskirts is not expected to be affected immediately as there is reserve supply for the next three to four days, said oil company officials. There would be problems if the strike continues for more than three days.
The tanker owners, represented by Southern Region Bulk LPG Transport Operators Association, are demanding 3.06 per tonne per km against the 2.94 per tonne per km offered by Indian Oil Corporation (IOC), Hindustan Petroleum Corporation (HPC) and Bharat Petroleum Corporation (BPC).
The talks between the transporters association and the oil companies on Friday failed and officials from the food and civil supplies department are set to intervene on Monday in an attempt to end the stalemate. Three rounds of talks between the two parties have failed in the last two months. A senior IOC official said, "We will hopefully find a solution soon."
After the previous contracts expired on October 31, 2014, new tenders were floated with a price band on the transportation charges. With 2.75 per tonne per km set as the lower limit, the oil companies offered a maximum of 2.94 per tonne per km, 12 paise less than what transporters are demanding.
Association secretary N R Karthik said, "The cost of operating the tankers has gone up since the last contract was signed in 2011." The oil companies had promised to revise the transportation charges but they are now refusing to hike the price, he said. "When we had asked them for a price revision they requested us to wait for three months."
"Three months have passed but they refuse to hear our plea still," he said.
The 3,200 tankers distribute cooking gas from oil refineries to around 50 bottling plants across Tamil Nadu, Puduchery, Kerala, Karnataka and Andhra Pradesh.
With talks between government representatives and the oil companies set to be held in Chennai on Monday, the strike could continue on Sunday, a tanker owner said.
The tanker owners, represented by Southern Region Bulk LPG Transport Operators Association, are demanding 3.06 per tonne per km against the 2.94 per tonne per km offered by Indian Oil Corporation (IOC), Hindustan Petroleum Corporation (HPC) and Bharat Petroleum Corporation (BPC).
The talks between the transporters association and the oil companies on Friday failed and officials from the food and civil supplies department are set to intervene on Monday in an attempt to end the stalemate. Three rounds of talks between the two parties have failed in the last two months. A senior IOC official said, "We will hopefully find a solution soon."
After the previous contracts expired on October 31, 2014, new tenders were floated with a price band on the transportation charges. With 2.75 per tonne per km set as the lower limit, the oil companies offered a maximum of 2.94 per tonne per km, 12 paise less than what transporters are demanding.
Association secretary N R Karthik said, "The cost of operating the tankers has gone up since the last contract was signed in 2011." The oil companies had promised to revise the transportation charges but they are now refusing to hike the price, he said. "When we had asked them for a price revision they requested us to wait for three months."
"Three months have passed but they refuse to hear our plea still," he said.
The 3,200 tankers distribute cooking gas from oil refineries to around 50 bottling plants across Tamil Nadu, Puduchery, Kerala, Karnataka and Andhra Pradesh.
With talks between government representatives and the oil companies set to be held in Chennai on Monday, the strike could continue on Sunday, a tanker owner said.
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