BMTC buses staring at impasse over fuel supply

The Bangalore Metropolitan Transport Corporation (BMTC) with a fleet of about 6,700 buses is staring at an impasse over fuel supply as oil companies have asked its retailers not to provide diesel in bulk to it, which is in violation of rules.

The BMTC has a stock of diesel only for a week in its depots, according to a senior official. In a few places its buses were seen queuing up at petrol pumps in the city to buy fuel at retail prices.

The BMTC has been buying diesel from retail outlets which supplied it in tankers to depots where BMTC buses are refilled, as bulk purchase rate of diesel is around Rs 30 per litre more than retail prices. The oil companies have hiked the price for bulk users following a rise in crude oil price in the international market, BMTC sources said.

The oil companies have now raised an objection and threatened retail outlets that their licenses would be cancelled if they did not stop supply in bulk to BMTC. According to the BMTC Managing Director Sathyavathi G, the bulk suppliers (oil companies) have asked the BMTC buses to fill diesel at the retail outlets and not at the depots.

“The bulk suppliers (oil companies) have told the retail outlets not to supply fuel in bulk to the depots because it is against the rules. It has come to our knowledge that the bulk suppliers have issued a set of directions for the retailers that if the BMTC approaches them for fuel then the buses should go to the retail outlets only,” she told reporters.

According to her, there is a difference of Rs 30 per litre in the bulk supply and the fuel sold at retail outlets.

“The issue has been brought to the notice of the Ministry of Petroleum and Natural Gases and the Government of Karnataka, and it would be sorted out at the earliest,” Sathyavathi said.

She also said that BMTC Director Radhika G is coordinating with the police department to ensure top-up of diesel at the nearest petrol pumps without any traffic hindrance and also at the BMTC depots.

“The operation of BMTC buses would be normal as usual and the travelling public wouldn’t be put to any inconvenience,” the BMTC MD said.

A senior BMTC official said the management today procured diesel from a bulk supplier after assuring them that all the dues would be cleared.

The corporation is also working with the state government to break the deadlock.