Public sector oil marketing companies (OMCs) have expressed displeasure over the Maharashtra government’s procurement practices for the fuel needed in State vehicles. The OMCs, including Hindustan Petroleum Corporation Limited (HPCL) and Bharat Petroleum Corporation Limited (BPCL), have written to Chief Minister Devendra Fadnavis about ‘unfair’ business practices deployed by the State government’s transport organisations, which terminated supply agreements while diverting 27 petroleum, oils and lubricants (POL) depots for other uses.
HPCL has also urged Mr. Fadnavis to consider its partnership in the forthcoming refinery at Ratnagiri and resolve the matter at the earliest.
Senior officials said the the Maharashtra State Road Transport Corporation (MSRTC) terminating the supply agreement with select OMCs triggered the disagreements.
The agreements to supply diesel oil, as well as various grades of lubricants required at its bus depots, were terminated 2018. “The OMCs had kept in mind the requirement of government vehicles while maintaining depots over the years,” said an official. The last such agreement was signed in September, 2014 for three years.
In view of the impending renewal, MSRTC had invited the OMCs for negotiations on July 27, 2017. It gave some an offer with revised commercial rates, while serving others, including HPCL, a termination notice, the OMCs have said. Despite repeated pleas, the depots were handed over to other competitors, the letter said.
Letter to CM
“The facilities provided by HPCL in MSRTC premises are being used by another party, which is against fair business practices,” said Rajnish Mehta, executive director — direct sales, HPCL, in his letter to the CM. “After exhausting all the options, we are approaching you as you have been the flag-bearer of a fair and transparent government. We seek your kind intervention,” Mr. Mehta said in the letter.
Both HPCL and BPCL did not respond to an email sent by The Hindu and attempts to reach them on phone were futile. However, senior officials of the State Transport Department said Mr. Fadnavis has asked department secretary Ashish Kumar Singh to look into the matter. “Our association with the OMCs goes back many years. If need be, we will see if there is a need to hand back the three dozen depots back to them,” said a senior government official.