New Delhi: Reliance Industries' over 1,200 petrol pump owners have threatened to launch an agitation from Thursday to protest against loss of business on selling petrol and diesel at higher price than their public sector rivals, who get compensated for under-pricing by the Government.
“The company had asked the Government to compensate it on an equal footing with public sector firms and possibly issue oil bonds to bridge the difference between the retail-selling price and the cost of production, a demand which was rejected by the Petroleum Ministry,” industry sources said.
"We are facing a loss of Rs 2-2.5 lakh per month per dealer," All India Reliance Petroleum Dealers Association secretary Sarju Jaisingbani said.
"The RIL officials have told us that if the government did not agree to give subsidy to Reliance, the company will close down the outlets," he added.
RIL, which has priced petrol and diesel at Rs 2.50 per litre higher than public sector firms, has seen diesel sales plummet about 70 per cent in June and July, leading to fall in market share to under two per cent from highs of 14 per cent.
Company officials could not be immediately reached for comments.
"Reliance is facing exodus of customers and naturally pump owners are a worried lot. Pump owners plan to launch an agitation from tomorrow and may go on an indefinite strike in the near future," an industry official said.
To tide-over the crisis, the company has offered the pump owners to pay monthly installments of the debt they had taken for setting up the retail outlets and enhanced their margin by 70-100 per cent.
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