[TorqueyTechie]

Petrol pump owners across India are planning to strike on Oct 13 demanding that petrol and diesel be brought under GST. This is going to affect people across India as around 54000 dealers have come together under United Petrol Front (UPF) and are readying to strike. UPF has also threatened that they will stop procuring and selling of the same from Oct 27.

Some of their demands include :

1. Upward revision of dealer margins. At present it is Rs.3.24/ltr for petrol and Rs.2.18/ltr for diesel.
2. Abolition of heavy penalty for violation of zero tolerance norm.

Also , truckers are in support for getting diesel under GST and are on a two day strike across India starting from today.

Excerpts from the article in TOI :

“While the Centre is harping on a one-nation-one-tax policy , how come an essential commodity like motor fuel has been kept out of GST? The inclusion of petrol and diesel in GST will solve many problems, apart from making them much cheaper,“ said M Prabhakar Reddy , a core committee member of UPF and chairman of All-India Petrol Dealers Association (AIPDA).

Reddy said while the Centre is dithering on bringing petroleum products under the purview of GST, its move to slash excise duty by Rs 2 per litre is meagre when compared to the fall in crude oil prices. He said reduction of excise duty by at least Rs 7 a litre could match the fall in crude oil prices -from $102 to $48 -in the four years since the BJP came to power at the Centre. Reddy said state governments should also take responsibility and reduce local sales tax on petrol and diesel.

“The Centre's latest policy regarding sale of petrol and diesel is draconian. Imagine paying penalty of Rs 50,000 if petrol measures less by a millilitre when tolerance should be up to 10ml considering the evaporation factor,“ said A Tharanath, executive member of Banga lore Petroleum Dealers Association (BPDA).

As far as inclusion of petrol and diesel under GST is concerned, the Centre is unlikely to take a decision any time soon, considering the possibility of revenue loss to both the Centre and states. While tax on fuel sales is a major source of revenue for the Centre (it earned Rs 2.42 lakh crore last year), it is expected to fall by 50% if petrol and diesel come within the GST bracket.

“There is no such proposal and inclusion of motor fuel in GST wasn't discussed at the GST council meet,“ said Ritvik Ranjanam Pandey , commissioner of commercial taxes, who attended the GST council meet on October 6.

[swissknife]

Originally Posted by TorqueyTechie

~~~~~
1. Upward revision of dealer margins. At present it is Rs.3.24/ltr for petrol and Rs.2.18/ltr for diesel.
2. Abolition of heavy penalty for violation of zero tolerance norm.

I thought the dealer margins were revised early August. I wonder what this demand is for to increase it again now? 3.24/litre for petrol is fairly on the high side, IMHO.

The second demand is totally unacceptable. The expectation is that they deliver fuel that meets the quality and quantity norms, 100% of the time.

[Reinhard]

Originally Posted by swissknife

The second demand is totally unacceptable. The expectation is that they deliver fuel that meets the quality and quantity norms, 100% of the time.

Absolutely. Time to take the stick out & amend the rule even to an even more stringent level. Instead of heavy fine - cancellation of license with immediate effect if substandard fuel is found at a station in audit. (Yeah well the audit itself may well be a farce...)

I think their 1st demand is to have a revision of margins every 6 months. Not happy with the wealth that they are accumulating with the current already high margins.

I don't think they'd give a damn if GST is not covering fuels at all. Its just a cover to hide these selfish demands.

[sleepyhead148]

Originally Posted by TorqueyTechie

2. Abolition of heavy penalty for violation of zero tolerance norm.

No. This is unacceptable. Considering the chequered history of many dealers in delivering adulterated fuel and the lack of quality measurement in most of our pumps, this is the only line of defense against erring pump owners (a rearguard defense at best).

[Dr.Vikas]

The Press Note given by Dealers National Body - UPF, for reference.




Friends,
A lot of assumptions seem to be going on regarding the proposed agitation by Petroleum Dealers. The basic reasons behind the strike are very well explained in the above Press Note.

Facts behind the latest Revision of Margin-
OMCs have started collecting their LFR (License Fee Recovery) charges with higher rates after the latest Revision of Dealer Margin. LFR which was some 37 paise per ltr has been increased by 11 folds now, ultimately limiting the actual margin to 2.84 ₹ for Petrol & 1.89 ₹ for Diesel.

Also with this 'revised' margin, OMCs under pressure from MoPNG, are asking the Dealers to pay the salaries to their workers in accordance with Minimum wages act. This factor was not considered while formulating the Margin & interestingly, OMCs have denied to give any Break-up of the Dealer Margin, even when asked for under RTI.

The toilets on retail outlets are now declared as 'Public Toilets' under the Swaccha Bharat abhiyan. Dealers never opposed the cause & are ready to support the movement wholeheartedly, but the penalties proposed for 'finding' a toilet 'unclean' are not at all justifiable/ reasonable.

Last year, OMCs had signed an agreement to fulfill the demands of Dealer Associations, but eventually turned down from their stand & have started to neglect all the communications made thereafter with respect to the same. I think, it's not at all acceptable & in view of no chance of dialogue, things couldn't remain in control of the leaders of association.

These are some of the main reasons behind the agitation of Dealers.

So, the call for nationwide strike has lot many reasons rather than the monetary one, which any common man would apparently assume.

Hope, this clarifies the doubts to some extent.
Thanks,

Please go through this News & just try to imagine the condition of the toilets provided at any public place in the country. Don't forget, there are paid workers appointed to clean the public toilets & still nobody cares about the condition, no question arises of imposing penalties there.

[NPV]

Hope this strike is called off
Also, I'm assuming COCO bunks and non-government oil companies like Shell, Reliance and Essar will not participate in this. Anyone have more details ?

[paragsachania]

Originally Posted by NPV

Hope this strike is called off
Also, I'm assuming COCO bunks and non-government oil companies like Shell, Reliance and Essar will not participate in this. Anyone have more details ?

I remember this from my drive on the Golden Quadrilateral, circa 2012 passing Rajasthan. Every fuel station was closed except for COCO.

So I presume that should be the case here too.

[SunnyBoi]

I have no sympathy for these striking dealers. Let them be shunted out and replaced by people who just want to do their job. Every month or other they keep striking and they don't give a rat's behind on how much inconvenience they are bringing to the general public.

It's already bad enough that we're paying unreasonable amount for petrol and these greedy dealers just make everything much worse.

[GTO]

Better fill up guys! It's just before the long Diwali weekend.

Originally Posted by TorqueyTechie

truckers are in support for getting diesel under GST and are on a two day strike across India starting from today.

Why do the truckers want it to come under GST?

1. Cheaper fuel.

2. They can get GST credits.

[sudeep.pandya]

Originally Posted by GTO

Why do the truckers want it to come under GST?



1. Cheaper fuel.



2. They can get GST credits.

It is an inconvenience to transporters to get the diesel from other cheaper states (considering their entire business is in a state which has higher taxes).
Most of them prefer their hometown as a filling point.

Also, it affects inter state transportation rates / quotes. Uttar Pradesh is a cool 6-7 Rs Cheaper than Madhya Pradesh. Heck, even Maharashtra is cheaper than Madhya Pradesh!

[Dr.Vikas]

First, I want to make it clear that I am in charge of a retail outlet since last 4 yrs & also am associated actively with the dealer association.
So I think, we can continue with the discussion on this highly explosive issue.

I already have tried to explain the stand of the Dealers association in my previous posts. The Common people are not supposed to know much about whatever has happened behind the curtain, hence sometimes may react extremely, just out of ignorance.

Here, one should at least try to understand that the Dealers haven't called this strike overnight or just to get benefited monitorily or somehow to protest any disciplinary action taken against fellow members having involved in any kind of misappropriations or irregularities.

We often observe public sector workers, Bankers, Govt employees etc calling for a strike all of a sudden anytime. I don't remember, when the Dealers last time have observed any such strike without prior intimation, further causing inconvenience to the general public.

Last year, it was just a black out for 15 min only & the proposed agitation was then rolled back after having received the MOU dated 4th Nov.16, duly signed by the hierarchy from all the 3 Govt. OMCs.

Needless to say, even if few of the demands had been fulfilled by the OMCs as per the Undertaking, NO any question would have arised regarding this proposed 24 hrs strike on 13th Oct.
Thanks,

[Dr.Vikas]

Good morning, everybody..

Would like to share a message from Dealer group, just to disclose the happenings behind the curtain.
(Don't ever expect or wish to gain any sympathy for the Dealer fraternity, but only want to enlighten you regarding the way OMCs behave & treat their so-called channel partners)


DEAR DISTRICT PRESIDENTS & RO DEALERS FAIPT- AIPDA & CIPD!

Never before in history of Petroleum trade has a National onslaught been shamelessly launched against STATE PRESIDENTS & SECRETARIES for their firm and united stand - to defy OMCs dictates to surrender the 13th Oct Closure!

Your National leaders were haunted, they were harassed, they were inspected, they were issued show cause notices, they were kept dry of product, they were threatened of dire consequences, they were intimated and much much more- your leaders stood firm, polite but steadfast and allowed inspections that continued until 2.00 am the next morning!

Such resolute the Nexgen RO dealers MUST LEARN FROM THEIR LEADERS
as time has come to test the determination of RO dealers on whose behalf this 13th Oct civil disobedience is called by UPF!

There is now no looking back- dealers of the Nation need to participate to earn back their dignity & self respect, as OMCs have betrayed every single commitment made to dealers!

OMCs by press statements have blamed & maligned RO dealers for not paying Central Wages and
W&M shortages, and causing Public disruption by not sitting for discussions!

If there ever was an Olympic trophy for betrayal & deceit, our OMCs would be Gold medalist and Global Winners of betrayal & deceit!

RO dealers need stay focused, need stay united- don't believe your SO, he works not for you, but for his Master - the British East India Co!

Stay on track, follow your leaders!

This is just an example, if you follow the OMCs official Twitter handle, you would come across many more & could easily understand the way they 'operate'..

Thanks again,

[condor]

Dr. Vikas, sorry to say but the last post reeks of rhetoric and looks to whip up frenzy (of association members). Neither this nor your prev post immediately above gives us any idea of the factual happenings.

Btw, one thing we all know is that this is not a flash strike. It has been announced in advance, and understandable that some efforts towards resolution have been put in before moving to this step.

[SunnyBoi]

Originally Posted by condor

Dr. Vikas, sorry to say but the last post reeks of rhetoric and looks to whip up frenzy (of association members). Neither this nor your prev post immediately above gives us any idea of the factual happenings.

Agreed.

Originally Posted by Dr.Vikas

The Common people are not supposed to know much about whatever has happened behind the curtain, hence sometimes may react extremely, just out of ignorance.

As far as I know, the common people do not need to know all this! This is an issue between you and the government/OMC/whomsoever, you folks should sort it out yourselves instead of airing your dirty laundry to the public.

The most inexcusable part of this is you are going on strike, petrol is an essential commodity for us general public and by denying sales you will cause lot of problems to the public.

A strike once a year or so seems fine, but you guys are striking every 2 months or so! I still remember the "ooh lets save fuel as per modi governments wishes, lets not sell fuel on sunday" plan. Oh come on, we are not that stupid. By crying wolf all the time and coming up with such hare brained schemes, you do not deserve any sympathy from us.

[Ragavsr]

I have no sympathy for both the Govt. OMC and their dealers.

Both are corrupt to the core. There have been numerous cases of OMC officials involved in siphoning off fuel from trucks and the dealers themselves involved in siphoning and adulteration.

Very few Govt. Petrol pumps are run honestly . In my survey, hardly 1-2/10 pumps are run honestly. No wonder I say, because to get a government OMC pumps, you need quotas of all sort - caste, armed forces and most of these pumps are owned by MP / MLA simply because you will need so much influence to get a pump allocated.

These days, I stick to Shell/ Reliance/ Essar. They have expanded their reach well and cover 80% of my needs. The only government OMC pump I use is the one in my neighborhood from which I have always got good results from.

Also, I would prefer taking my business to honest business men/women. The private pump allocation criteria looks transparent. Show proof of landownership and get a pump.