Diesel cheaper for large businesses than to common man
- Oct 23, 2012, 12:54 PM IST
New Delhi: How the smaller Indian buyers pay more for fuel, comes from the recent findings showing that bigger hotels and other companies pay nearly a rupee less per litre of diesel than individual buyers. This 90 paise discount is seperate from the Rs 11.65 per litre subsidy that diesel buyers get generally.
Companies like The Leela Kempinski hotel, DLF Golf Resorts, Ambience Mall and Unitech Cyber Park among others, paid Rs 44.76 per litre of diesel compared to Rs 45.65 paid by customers at fuel pumps. The reason attributed to this is, that when one buys from fuel pumps, there is a dealer commision involved on a per litre basis which the customer has to bear, but in the corporate or large scale buyers, this fee is waived off since oil marketers directly supply to these companies. Also, since volumes are geenrally higher at the corporate level, dispensing charges diminish, which show up as discounts. But in the case of fuel pumps, controlled by the Federation of All India Petroleum Traders, generally dispenses smaller volume to individual consumers thus pushing costs up, resulting in the higher price. It gets more interesting when the cheifs of oil marketing companies such as Indian Oil Corporation (IOC) and Bharat Petroleum Corporation Limited (BPCL) were quizzed along with the Petroleum Minister S.Jaipal Reddy, they put ignorance as their defence, saying they were unaware of the situation. This comes as surpise simply becuase in January this year, he mentioned "In view of the fact that OMCs have been incurring huge under-recoveries on sale of diesel and these under-recoveries are compensated by upstream oil companies, it has been decided that OMCs should immediately stop extending discount in the selling price of diesel."
This just clarifies the situation where the common stands to loose, but the corporates and most importantly the government, turn a blind eye to the situation.
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