Kochi: A day after major oil companies unravelled their plan for massive retail outlet network expansion, the state government on Monday termed the move "not acceptable" and said it would take up the issue with the Centre.
"The opening of such a large number of petrol pumps will increase pollution. It comes at a time when we're attempting to introduce electric vehicles and lessen the number of petrol and diesel vehicles on roads. We'll take up the issue with the Union government," transport minister A. K. Saseendran told DC.
Public sector oil marketing companies Indian Oil Corporation Ltd (IOCL), Hindustan Petroleum Corporation Ltd (HPCL) and the Bharat Petroleum Corporation Ltd (BPCL) together eye 1731 new petrol pumps - 960 in urban, semi-urban and highway areas and 771 in rural areas.
Currently, there are 2005 fuel pumps in Kerala. Though petrol consumption in the state went up by four per cent (till October), the diesel sales registered a negative growth of three per cent compared to the corresponding period last year.
Meanwhile, the Petroleum Dealers Associations has come out against the move saying even the business prospects are not bright for 50 per cent of the existing dealers.
They threatened to observe a 'Protest Day' by shutting down pumps.
"The Apurva Chandra Committee study has found that a dealer has to sell 170 kilolitre fuel per month to earn a decent profit. However, 56 per cent of fuel pumps in the state sell only 70 to 100 KL. The doubling of fuel outlets will further cut off the individual revenue," said All Kerala Federation of Petroleum Traders (AKFPT) general secretary Meleth Radhakrishnan.
