Tuesday, January 30, 2001
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Oil ministry pits one against the other to check default 

Anupama Airy  
In its move to bring defaulting national oil companies to book, the petroleum ministry seems to be using the logic of setting a thief to catch a thief. The idea is to get one oil company to carry out sneak inspections at the retail outlets of other oil companies, and ensure that the operations are above board.

Top petroleum ministry officials disclosed that a national survey was underway to identify leading public sector oil marketing companies which were violating the guidelines on `re-sitement' of retail outlet dealerships. This exercise, sources said, was being conducted for the first time. Officials said investigations conducted by the ministry had shown that sale of products at the original sites was continuing even after the re-sited facility had been commissioned at a new location. However, under the current policy, dual operation is not permitted once the outlet is commissioned at new locations.

The companies against whom investigations have been ordered include Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL), Hindustan Petroleum Corporation Limited (HPCL) and IBP Co Limited.

To trap the thief, the petroleum ministry has directed Indian Oil officials to check retail outlets belonging to HPCL, while officials of Bharat Petroleum and IBP Co have been asked to check the retail outlets of Indian Oil. HPCL officials have been asked to cross-check outlets of Bharat Petroleum and officials of BPCL would in turn check the retail outlets of IBP Co.

Giving details of the plan, the officials said that selling the same product at two locations by one dealer amounted to dual operation, which is a gross violation of government guidelines. Government policy clearly stipulates that sale of petroleum products at the old site should be stopped with immediate effect in all those cases where the sale has commenced at the new location as a result of re-sitement. "Oil marketing companies have been directed to cross-check all cases of re-sitement i.e., cross-checking will be done by officials of the oil marketing company different from the company to which the retail outlet belongs", sources said.

Officials said strict action would be initiated against officials who have allowed the operation of retail outlets at both the sites (old and new).

Till the completion of this national survey, the petroleum ministry has ordered that the sale of petroleum products be stopped immediately in all those cases where the sale has commenced at the new location as a result of re-sitement.

Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.

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