NEIPDA Threatens Indefinite Shutdown Over Oil Companies' Unilateral Actions

STAFF REPORTER

GUWAHATI: Petrol pumps across Kamrup Metropolitan and Kamrup districts remained closed for 24 hours from 6 am on November 12 to 6 am on November 13 following a shutdown call by the North East India Petroleum Dealers Association (NEIPDA), with petroleum dealers accusing oil marketing companies (OMCs) of violating agreements, arbitrarily imposing penalties and transferring dealers' funds without their consent.

The shutdown is part of an escalating dispute between petroleum dealers and oil companies, with the association alleging that the latter have been taking unilateral decisions and interfering in dealership operations without following established procedures.

The dealers have demanded government intervention, claiming that oil companies are acting beyond their authority and imposing punitive measures on dealers instead of referring alleged violations to the government departments concerned or law enforcement agencies.

Speaking to The Sentinel, NEIPDA (Greater Guwahati Unit) president Rajib Goswami said the dealers were not seeking any extraordinary concessions but merely demanding strict implementation of the Memorandum of Understanding (MoU) signed between the dealers and oil companies around eight to ten years ago in the presence of the Kamrup Metropolitan District Commissioner.

"We are not demanding anything major. We only want the Memorandum of Understanding signed with the oil companies eight to ten years ago, in the presence of the Kamrup Metropolitan District Commissioner, to be followed strictly, word by word. These are official minutes agreed upon in the presence of the government, but the oil companies are refusing to follow them," Goswami said.

He alleged that oil companies had increasingly resorted to unilateral action against dealers, including imposing penalties and taking punitive measures without adhering to the procedures agreed upon.

"If the oil companies have any issues, they should inform the concerned government authorities or law enforcement agencies, which can take whatever action is required. However, nowadays, the oil companies have started taking the law into their own hands and imposing penalties on dealers," he alleged.

The association has also raised concerns over alleged unauthorised transfers of funds from dealers' accounts and arbitrary financial penalties, which it claims have created an atmosphere of uncertainty among petroleum dealers.

According to Goswami, the dispute is no longer limited to business-related disagreements but concerns the manner in which oil companies are exercising their authority over dealers despite the existence of mutually agreed terms.

The association has warned that the 24-hour shutdown may be followed by a much longer disruption if its grievances remain unaddressed. NEIPDA has threatened an indefinite shutdown from November 23 if the oil companies fail to resolve the issues and comply with the dealers' demands.

The dealers have called for intervention by the government to ensure that the existing agreements are honoured and that oil companies follow due process while dealing with complaints against petroleum outlets.

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