The ongoing dispute between CNG dealers and oil marketing companies (OMCs) over sharing the commission on CNG sales is likely to be resolved soon, a senior government official has said.
The ongoing dispute between CNG dealers and oil marketing companies (OMCs) over sharing the commission on CNG sales is likely to be resolved soon, a senior government official has said.
The state government held talks with dealers and also met the OMCs recently in a bid to resolve the matter. Senior BPCL, HPCL and IOCL officials from Mumbai held talks with the government on the issue. CNG dealers had approached the state government seeking its help in resolving the dispute.
“We met representatives of OMCs on Tuesday and discussed the commission sharing issue with them. They have assured us that an amicable solution would be worked out with dealers soon,” DJ Pandian, principal secretary, energy & petrochemicals department, said.
He also said that CNG dealers have decided not to proceed on any more strikes for the time being. Arvind Thakkar, secretary of Federation of Gujarat Petroleum Dealers Associations, said he was confident that the issue would be resolved.
The dispute is over the commission paid by GSPC Gas to OMCs such as BPCL, HPCL and IOCL for selling CNG through their retail network. Earlier, the OMCs received a commission of Rs1 per kg on CNG sales, which was shared in the ratio of 43:57 between the companies and dealers.
The commission was increased to Rs1.45 per kg of CNG sometime back, but dealers’ share of commission was cut from 57% to 50%. Peeved at the arbitrary reduction, CNG dealers across the state went on a one-day strike on June 1. They warned of more strikes if the earlier commission sharing formula of 57:43 was not restored.
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