India: Fuel Service Stations Threaten Reduced Opening Hours
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Friday, 28 September 2012 |
The Confederation of Indian Petroleum Dealers (CIPD) has threatened to restrict opening hours at fuel service stations from October 15 as it presses for higher retail commissions. The organisation, which broke from the Federation of All India Petroleum Traders (FAIPT) earlier this year, said that retailers are in "deep financial trouble" because of increased costs.
"With our backs to the wall, it was resolved that the retail outlets will operate single shift from October 15 to cut costs on manpower and electricity as acute austerity measures," said the CIPD in a letter to the Oil Ministry. “Before we resort to this unpleasant option, we have advised dealers not to place any indents on October 1 and 2," the association added.
CIPD members are largely based in Maharashtra and Gujarat. The FAIPT, which still claims to represent the majority of retailers, has not given any call for industrial action. Dealer commission currently stands at Rs 1.499 per litre ($0.028) on petrol and Rs 0.912 per litre ($0.017) on diesel, having been raised in July 2011. The Oil Ministry has ordered the country’s three main fuel retailers to devise revised dealer commission by October 4.
PetrolWorld 28092012
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