“The committee will submit its report to the NOC and also the federation, making suggestions for the future course of action,” Digambhar Jha, NOC managing director, told myrepublica.com.
The state-owned petroleum import monopolist who also oversees the petroleum sector formed the committee after the federation resisted its decision to bar tankers dated 20 years and over from ferrying the highly inflammable fuel. The corporation made the decision citing reasons of security and cost.
However, the NOC withheld its decision after the federation launched a a two-day strike, bringing imports and fuel distribution to a grinding halt, thereby creating a shortage in the market.
“There is no alternative to the eviction of unsafe and uninsurable tankers from the system. And we are hopeful the committee will work out ways that will be acceptable for the tanker entrepreneurs,” said Jha.
Going by the NOC’s statistics, the NPTF utilizes 40 tankers from the last 20-25 years, and an additional 79 tankers dated more than 25 years for importing and distributing the fossil fuel. Enforcement of the decision would remove those 119 tankers from the system.
Moreover, citing security reasons, the NOC´s bylaw disallows tankers dated even 10 years-old from operating. If this provision is to be implemented, around 250 of some 1,100 tankers presently transporting fuel would be removed from the system.
“We understand the sensitivity of the issue and the need to replace the older vehicles. But the number is too high to start with,” said a member of the NPTF, who elaborated that the federation would make an appeal to the corporation to implement the provision on a more gradual basis.
Officials at the federation informed myrepublica.com that they, in fact, welcomed the decision as it would open up the opportunity for able players to introduce new carriers to the system.
“However, as a large number of old tankers are owned by the drivers themselves, and they had acquired the same from the larger operators in the federation, the federation could not welcome the decision when the association of tanker drivers protested it,” he said.
The NPTF member, furthermore, accepted that concerns of safety and higher operating cost raised by the corporation were genuine. “It will be a tough task to convince the drivers, but if the corporation arranged soft loans to replace their vehicles, they will probably agree with the decision,” he added.
milan@myrepublica.com
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