Kochi: The petrol and diesel consumers in the state are apprehensive of the impact of the decision by oil marketing companies to opt for a daily price change system for retail trading from June 16.
But more than the consumers, apprehensions are more amongst the petroleum product dealers in the state. The All Kerala Federation of Petroleum Traders has called upon the oil marketing companies to defer the decision citing the lack of an adequate infrastructure backbone supported by technology for the rollout of such system.
"Nearly 80 per cent of the retail petrol and diesel outlets in the state are not fully automated, and it would make the synchronisation of price updating almost impossible", said M. Radhakrishnan, secretary of the Federation.
Although oil marketing companies have spent millions of rupees in the past five years for automation, less than 20 per cent of the pumps are partially automated.
The companies were also unable to correct the technical faults detected in the automation process, he said.
According to Mr Radhakrishnan, a meeting of the All India Federation of Petroleum Traders will be held in Mumbai on Monday to firm up the response of the retail traders on this issue.
"We will wait for the outcome of the meeting in Mumbai," he said. Mr Radhakrishnan also said that oil marketing companies have resorted to the daily price fixing system to minimise the impact of the periodical increase. Most consumers are unlikely to notice the daily increase of five or ten paise compared with an increase of '1 or '2 in three months or four months.
"The talk about helping consumers is hogwash as the price fixing formula followed by the government is against the interests of the consumers," said P. Vinod Kumar, a consumer activist in Kochi.
"If we are really going to follow the international trend the price of petrol per litre will be less than Rs 40." According to Mr Radhakrishnan, the immediate result of the decision will be lower inventory by the pump owners and non-operations in the night.
"The oil marketing companies are not ready to bear the differences in price every day and which may lead to a loss for the dealer. So the dealer will opt for only a minimum level of inventory", he said.
The pilot project for automation implemented in four cities and the Union Territory of Pondicherry has created several difficulties for the retail traders in these places. "The difficulties faced by the dealers have been conveyed to the heads of the three oil marketing companies," Mr Radhakrishnan said.
