DKUPDA urges oil companies against awarding dealerships indiscriminately

DKUPDA urges oil companies against awarding dealerships indiscriminately

Mangalore Today News Network

Mangalore, Mar 12, 2013: Dakshina Kannada Udupi Petroleum Dealers Association (DKUPDA) has urged the Oil Marketing Companies to bear in mind the interests of the existing dealers while expanding  the dealer network through the length and breadth of India.

 

Speaking at a  press meet on March 12, Tuesday former president of DKUPDA, Satish N Kamath said that the petroleum companies spend lakhs of rupees in each district on advertisements inviting applications for dealerships. They also charge heavily for every application and the  gullible applicants are given rosy pictures about the working of petrol pumps, he said.

The land is leased out to the company for a long period at very nominal rate  and the dealers are made to spend huge on building, compound wall, generator, stocks etc, he pointed out.

Today most of the recently opened petrol pumps are shutting down due to lack of staff, pilferage through tankers, losses due to evaporation, high cost of power and generator power and finally lack of projected sales.

He said the demand of the Association was that the oil companies should   take action against those officers who have been promoted despite the fact that the petrol pump dealerships awarded by them have not been benefitting the company.

 The ministry of petroleum has given clear directions to the OMC’s through a letter dated 25-4-2011 to withdraw all advertisement, make a feasibility study and put petrol pumps in areas where the guidelines like volumes, distance norms are met, he said.

Kamath further said that the company must  issue instructions to automate all petrol bunks so that details will be visible to the dealers, company and even to the customers at any point of time.

DKUPDA President Sujeerguthu Aithappa Alva and former president K V Shenoy were present at the press meet.