PSU OMCs seek changes in dealership norms

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Public sector oil marketing companies (OMCs) have sought amendment in the existing norms for award of dealership for setting up a large number of `standalone auto-LPG outlets' in the country. Proposals in this regard have already reached the Union Petroleum and Natural Gas Ministry.

By setting up only auto-LPG dispensers in the existing petrol pumps, PSUs have built a network of just 183 dispensers across the country since 2001.

This is irrespective of the very high growth demand for auto LPG - 74 per cent growth in sales during the first 10 months of this fiscal - as an economically viable greener alternative of petrol vis-à-vis free-pricing mechanism helping companies earn a decent margin of Rs 1,400 per tonne and launch of LPG variant models by leading automakers.

According to sources, the existing norms make it mandatory for oil PSUs to appoint 50 per cent dealers from the reserved categories and economically weaker sections of the society. "This often leads to a situation whereby we appoint dealers without much entrepreneurial skill. Arguably though, this eventually adds to our problem of low per pump throughput. Also we bear almost the entire cost of setting up such pumps," said a senior official with a public sector refiner.

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