Maha petrol pumps not to go on strike

The Federation of All Maharashtra Petrol Dealers Association, an umbrella organisation of petrol dealers in Maharashtra, has decided to stay away from the proposed nation-wide indefinite shutdown of petrol pumps starting from September 20.

The decision was taken at a FAMPEDA meeting held in Mumbai on Friday, comprising of all district level functionaries of the Federation.

"To avoid any difficulties to people during the time of Ganesh Chaturthi and taking into account the Commonwealth Games, FAMPEDA has decided not to participate in the proposed strike called by the Federation of All India Petroleum Traders," FAMPEDA Core Committee member, Girish Kamdar, told PTI in Mumbai on Friday.

The meeting was attended by all district level functionaries of the Federation, he said.

"We are highly sympathetic towards the issues raised by FAIPT.

"But considering the special situation, we have decided to stay away from the strike," Kamdar said.

FAMPEDA has 4,000 outlets under its control in Maharashtra. According to Kamdar, petrol dealers in Gujarat, Rajasthan and Kerala are also likely to stay away from the nationwide strike.

FAIPT had called for the strike after talks with state-run oil companies and the Oil Ministry over a new formula for deciding dealer commission failed.

The Federation of All India Petroleum Traders which represents around 38,000 petrol pumps in the country, has been demanding dealer commission as a percentage of the pump price instead of the fixed amount.

The dealers made this demand since the Government lifted controls over petrol pricing in June and allowed oil companies to change prices after every 30 days in line with international crude.

Recently, the ministry had raised dealer commission on petrol from Rs 1,125 per kilolitre to Rs 1,218.

Dealer commission on diesel was also raised from Rs 673 a kilolitre to Rs 757.

The dealers argue that once the companies start changing prices periodically in line with international crude, pump-owners will suffer losses on existing stock every time there is a downward revision.

They also claim such frequent changes will also push up their operating costs.