Petroleum Strike Avoided in India

The Federation of All India Petroleum Traders (FAIPT) has withdrawn its strike call for Monday, after the government decided to form a committee to examine the demand of a change in dealership commission, based on a fixed percentage of invoice value.The committee, under the chairmanship of Apurva Chandra, joint secretary (marketing), Ministry of Petroleum and Natural Gas, will submit its report in three months. According to FAIPT Secretary Ajay Bansal, the strike has been ‘deferred’ for three months till the committee report is submittedThe committee will also look into FAIPT’s demand for rationalising the growth of retail outlets in the country.

According to a decision taken at a meeting, chaired by petroleum minister Murli Deora, today, the committee will arrive at a set of guidelines on the basis of which public sector oil marketing companies will proceed while planning and operationalising new retail outlets.

The government also decided that dealers would have the option of depositing money for real time gross settlement with public sector oil marketing companies through demand drafts, in addition to the cheque facility allowed to some select dealers as of now.

Deora had earlier asked the federation not to proceed with their “no purchase, no sale” campaign from Monday in view of the ensuing Commonwealth Games.

Several rounds of discussions were held between the ministry and the representatives of FAIPT over the last week.