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Old 11th April 2017, 10:35   #1
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Default Fuel stations in 8 states to be shut on Sundays. EDIT: Cancelled

A group of petrol bunks associations have planned to close their petrol bunks every Sunday starting from May 14, 2017. This is in support of our PM's vision in reducing fuel consumption. This will not affect countrywide as The Consortium of India Petroleum Dealers (CIPD) which has taken the decision is present mostly in the southern states of Kerala, Tamil Nadu, Karnataka and Maharastra.

Quoting from source :

Quote:
Meanwhile, Ajay Bansal, president of All India Petroleum Dealers' Association, clarified that this was not going to have a countrywide impact as the CIPD had presence in just a few states.

"This will create panic. The association that has called for such a move has presence in only Kerala, Tamil Nadu, Karnataka and Maharashtra. We are not supporting this decision, while we also have the same demands to increase," he told Business Standard.
Source :

1. Business Today

2. Business Standard

Apart from this , Petrol bunk owners are planning to shut down fuel stations on May 10 as a protest demanding higher dealer commissions. Government has not yet taken a decision and this is quoted as the reason for the plans to shut down fuel stations.

P.S : Mods, please merge if any thread already exists
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Old 11th April 2017, 11:13   #2
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Default re: Fuel stations in 8 states to be shut on Sundays. EDIT: Cancelled

Hare-brained decision. And I don't think it's going to last for long (if it kicks in at all) as some ingenious pumps will find a way to stay open and benefit from increased business.

Backward thinking in a growing economy, honestly. There are many businesses that run even on Sundays. What if the stakeholders of those establishments need to get around on Sunday? Sundays also see the maximum movement of families going out together. On a similar thought process & contrary to this Sunday move, the government should actually encourage more pumps to operate at night. India is running 24/7 and there are many who need to tank up at night.

Keeping pumps shut on Sundays isn't going to magically 'decrease fuel usage'. It'll only lead to long lines outside pumps on Saturday evenings as we Indians are known to be last minute champions (ever been to a government office on the last payment day?).
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Old 11th April 2017, 11:32   #3
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Default re: Fuel stations in 8 states to be shut on Sundays. EDIT: Cancelled

Quote:
Originally Posted by TorqueyTechie View Post
A group of petrol bunks associations have planned to close their petrol bunks every Sunday starting from May 14, 2017. This is in support of our PM's vision in reducing fuel consumption.
...
Government has not yet taken a decision and this is quoted as the reason for the plans to shut down fuel stations.
Quote:
Originally Posted by GTO View Post
Hare-brained decision.
...

Keeping pumps shut on Sundays isn't going to magically 'decrease fuel usage'. It'll only lead to long lines outside pumps on Saturday evenings ...
OK, so lets analyse this.

Dealers are going to be shut on Sundays. No, I don't think it is to support the PM's vision (obviously! Even a 5-year-old will tell you that!), but the truth could be a lot simpler.

The dealers have been asking for higher commissions. Which means more revenue. Which means more profits. A decision on higher commissions has not been taken, hence the Sunday Holiday move by dealers.

If they shut on Sunday, more people will tank up on Saturday. Overall, sales will not fall. Not by much anyway. Shutting on Sunday will also mean reduction in costs. Electricity. Attendants' salary. So, keep revenue more or less constant, reduce costs, increase profits.

Simple, yes? All this will unravel if there are "innovative" dealers who remain open on Sunday.

Do COCO bunks also come under the association? I think not.
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Old 11th April 2017, 11:42   #4
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Default re: Fuel stations in 8 states to be shut on Sundays. EDIT: Cancelled

For once I feel the Govt should just let the oil companies have it!!!

Let them taste their bitter decision and think twice before going behind such illogical threats in future!
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Old 11th April 2017, 12:20   #5
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Default re: Fuel stations in 8 states to be shut on Sundays. EDIT: Cancelled

I guess both the business news portals decided to twist the story just to get more eyeballs.

The actual reason for the Sunday shutdown threat is for hiking dealer commission. You can find the details here -

Economic times

Quote:
Petrol pump owners have threatened to not purchase petrol and diesel for a day on May 10 and subsequently shut outlets every Sunday if their demand of higher margin is not agreed upon by the government.

Moneycontrol
Quote:
In January, petrol pump owners had withdrawn their strike after public oil companies assured them of a revision in commission rates. So far, no concrete decision has been taken on the matter.
According to an Indian Oil Corporation circular, dealer commission on petrol currently stands at Rs 2.56 per litre while on diesel, the commission is Rs 1.65 per litre as on April 1.
On May 10, there will be 'no purchase' of diesel or petrol. From May 14 onwards, petrol pumps will remain closed on Sundays.

Firstpost
Quote:
10 May as govt yet to decide on higher commission
With no response coming in from the government's side on its previous demand for higher commission, owners of petrol pumps in the country have threatened to go on strike by taking a 'weekly off' every Sunday. Petrol pump don't take weekly offs as of now.

According to a report in The Times of India, petrol pump owners have threatened to make 10 May 'no purchase day'.

In fact, pump owners had withdrawn their strike earlier in January following assurance from oil PSU firms on revision in dealer commission rates, but have so far not received any communication from them.

OneIndia
Quote:
The petrol pump owners on Sunday said that if the government doesn't hike dealer's commission they would observe weekly off on every Sunday from May 10. They further said that the petrol pumps will work only for eight hours in a day across the country after May 10. Also, May 10 will be observed as 'No purchase Day'.


But also, are the dealers loosing money or atleast not earning properly in general? Apart from the few bigger bunks having advantage of location is it possible for a newly opened bunk to be profitable?

There were few discussions on this in the past Link (Petrol Pump Business: No longer as lucrative?)

Last edited by mpksuhas : 11th April 2017 at 12:30.
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Old 11th April 2017, 13:20   #6
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Default re: Fuel stations in 8 states to be shut on Sundays. EDIT: Cancelled

Quote:
Originally Posted by mpksuhas View Post
I guess both the business news portals decided to twist the story just to get more eyeballs.

The actual reason for the Sunday shutdown threat is for hiking dealer commission. You can find the details here -

There were few discussions on this in the past Link (Petrol Pump Business: No longer as lucrative?)
Well lot of contradictory stories on this. But today morning even in the regional news channel they were mentioning that sundays would be off in support of Modi's vision. I am not sure which one to believe though.

But true or not, this if really implemented is going to be a stupid decision and one that would create confusion and chaos!
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Old 12th April 2017, 15:52   #7
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Default re: Fuel stations in 8 states to be shut on Sundays. EDIT: Cancelled

And what about Part 2 of the news articles, which say that from May 15, petrol pumps will operate from 9 AM to 6 PM in order to cut costs. That means I will have to set out extra early in the morning to join a long line of cars at the pumps before going to the office, or leaving office early to join a long line of cars and hope to get my weekly fill before the 6 PM deadline. This will take us back to the dark ages, I say!
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Old 12th April 2017, 17:34   #8
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Default re: Fuel stations in 8 states to be shut on Sundays. EDIT: Cancelled

This is the stupidest thing I've heard in recent times- and competing with the likes of sun-film ban and bar>500m on highways, it has some serious competition too!

Growing up, my Dad took the train to work every day and we only took the car out on Sunday. All of our refuelling happened *only* on Sundays as a result.

Even when we do driving trips, we typically return on a Sunday, driving up to 600 km at times. Am I expected to carry around jerrycans full of petrol in my boot now? Am sure even that would violate some rule or the other!

It's high time the whole business of petrol pumps was looked at afresh. It does seem the petrol pump operators have a valid grouse regarding low margins that the government is ignoring.
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Old 13th April 2017, 11:02   #9
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Default re: Fuel stations in 8 states to be shut on Sundays. EDIT: Cancelled

Quote:
Originally Posted by KiloAlpha View Post
If they shut on Sunday, more people will tank up on Saturday. Overall, sales will not fall. Not by much anyway. Shutting on Sunday will also mean reduction in costs. Electricity. Attendants' salary. So, keep revenue more or less constant, reduce costs, increase profits.
Different viewpoint, thanks for sharing!

However, I don't agree. Have worked in retail myself. There is no retail outlet on the planet which can enhance profits by remaining shut on its busiest day. It just doesn't add up. If I were a petrol pump owner, I'd actually staff up on weekends.
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Old 13th April 2017, 11:04   #10
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Default re: Fuel stations in 8 states to be shut on Sundays. EDIT: Cancelled

I agree. This means all weekend long distance motoring gets hit for a six. I do not think it will come to pass.
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Old 13th April 2017, 12:32   #11
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Default re: Fuel stations in 8 states to be shut on Sundays. EDIT: Cancelled

Quote:
Originally Posted by noopster View Post

It's high time the whole business of petrol pumps was looked at afresh. It does seem the petrol pump operators have a valid grouse regarding low margins that the government is ignoring.
The system is becoming more efficient and transparent. Margins are doing down. Easy money days from petrol pumps are coming to an end. The entrenched players with their unions are feeling the pinch. As this business becomes less viable for politicians to get into, the negotiating power of these 'associations' will go down. With technology costs of doing business will come down. Big players will enter the market----Reliance, Essar leading to consolidation of this business. Sarkaari monopoly of fuel and gas retail is coming to an end.

Last edited by drsingh : 13th April 2017 at 12:33.
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Old 13th April 2017, 13:08   #12
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Default re: Fuel stations in 8 states to be shut on Sundays. EDIT: Cancelled

It must be hard (& thereby expensive) to find responsible attendants who'd work during weekends, public-holidays & even nights.

But the right way to solve is that there can be a change in price based on time of filling. People who fill-up at night could be made to pay for the overheads incurred for keeping the bunk open at night. Likewise for weekends & public-holidays.

Last edited by WorkingGuru : 13th April 2017 at 13:15.
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Old 13th April 2017, 16:38   #13
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Default re: Fuel stations in 8 states to be shut on Sundays. EDIT: Cancelled

Its become crazy by the day, and this is one of the most stupid decision someone can take. It is NOT going to bring down any consumption, this is just going to create lot of inconvenience especially to folks who are on longer trips.

On the other hand dealers are finding it hard to make the profits as it used to be, even finding labor in cities like Bangalore is a very hard thing. A friend who runs a station says he has some 23 employees and just keeping them itself is a nightmare for him, so giving a day off is seen as a welcome move from his perspective. Easier to comply with labor norms also, instead of having staggered holiday to retain 7 day operations.

We have the costliest fuel prices, thanks to various taxation. Unless someone relooks at this and rework the profit sharing, many such stupid actions can be expected. Won't be surprised if we see number of private folks pulling out of business and using the land for other business which are more profitable :-/
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Old 13th April 2017, 23:19   #14
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Default re: Fuel stations in 8 states to be shut on Sundays. EDIT: Cancelled

My maternal uncle who owns one pump is not entirely appreciating this decision. His pump is on one of Saurashtra Highways. He states that finding manpower isn't difficult for him. Sundays are good for business in the region he is operating the pump. A lot of buses, three wheelers, Tempo (tempo trax), LCV and even cars usually run and stop for fuel at his station.

Those who are traveling out of station, for them this is a move that lacks any value adding logic. I was having a meeting in Nashik on 10th morning this month, so drove on 9th (Sunday). Had to refuel my car on the way as started with half a tank fuel. Now, such things cant be expected in future, have to be very calculative about fuel then. Doesn't make any sense when one has to drive on Sundays with a firm eye on fuel gauge.
With my car, I cannot travel more than 500 kms on Sunday if this policy is implemented.

Wonder why is it that fuel is heavily taxed and now the supply is being artificially limited in one way or the other ? Focus on getting better infrastructure than coming up with such ideas that are going to just create some inconvenience for citizens.

Also read somewhere that pumps may be closed at night time. So everything has to be done in 15-16 hour window including refueling the car ? Are we as a nation actually steaming ahead with confidence ? I mean, I am lost for words to comment on these decisions.

Last edited by aaggoswami : 13th April 2017 at 23:21.
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Old 14th April 2017, 05:24   #15
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Default re: Fuel stations in 8 states to be shut on Sundays. EDIT: Cancelled

I came across this article on this rumour.

http://www.opindia.com/2017/04/will-...-modis-vision/
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