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Credit stops: no fuel to govt depts if no payment by Dec 1

Rajeev Bhaskar, Hindustan Times  JALANDHAR, November 14, 2013
First Published: 23:00 IST(14/11/2013) | Last Updated: 23:03 IST(14/11/2013)

Fuming over long outstanding payment of about Rs. 4.5 crore, dealers have decided to stop giving fuel on credit to defaulting state government departments by December 1.

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Punjab Petroleum Dealers Association announced its decision here on Thursday. "We are fed up with supplying fuel on credit to the government departments. The bills are now piled up, leaving us with no option but to deny any more of it," said association president JP Khanna.

March onwards, no payment had been made to the dealers, said Khanna, adding that major defaulters were the excise and sales department, and police. "About Rs. 50 lakh is due against the excise and sales department alone," he further said.

The original decision was to discontinue the supply immediately but then the administrations of some districts sought a month's time. Now if the dues are not cleared by November 30, from December 1, there will be no refuelling for indefinite period.

"Owners of the fuel retail outlets are under financial crisis already, as the margin on sale has become very less and the investment has increased because of the cost of the product," said the dealer association president. Since the policy of bulk purchase of petroleum products has made petrol costly by Rs. 6 to 7 per litre at state-owned pumps, even state-run Punjab Roadways and PEPSU buses now refuel at private filling stations.

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