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ANSWERED ON:  19.09.2020
Banking Industry
S. Venkatesan
Will the Minister of

PETROLEUM AND NATURAL GAS be pleased to state:-

(a) whether the Petroleum Company contracts the lorry to transport
petroleum products from depot to the retail outlet of the petrol
pump owner and if so, the provisions of the company’s rules;
(b) whether the transport tender of the petroleum company is
approved for a period of five years;
(c) if so, the provision of the company regarding contracts of the
tankers, lorries for the transportation of petroleum products to the
pumps with regard to those where the pumps are functional
following the completion of tender process and those who couldn’t
participate in the tender process; and
(d) the details of proposals for approval, dealer‘s applications received
by the zonal office for the transportation of diesel, petroleum
products to the retail outlets of the pump owners by their own
tankers, lorries from the depot, terminal after 2017 falling under
the North Central Regional office of HPCL?

(a) Yes Sir. Oil Marketing Companies (OMCs) have informed that the
contract for transportation of petroleum products from depots/terminals
to retail outlets is finalized through tenders by OMCs. The petrol pump
owners offering tank trucks for transportation of their own demand from
depots/terminals to their own retail outlet are inducted through
Expression of Interest (EOI), whereas, for balance retail outlets, tank
trucks to transport petroleum products are inducted through Public
Tender from transporters.
(b) Yes Sir. HPCL and BPCL have informed that as per current policy
transport contracts are finalized for a period of 5 years. In case of IOCL
contract is done for 3 years which is extendable upto 5 years at
discretion of the company.
(c) Oil Marketing Companies (OMCs) have informed that Transport contracts
are finalized with transporters for each supply location separately.
Transport contractors are required to transport Petrol and Diesel to all
retail outlets fed by that supply location during contract period. This is
also applicable to new retail outlets which are commissioned after
finalization of transport contract. Transport contract is made only with
those transporters who have participated in the tendering process, who
have quoted lowest rates or willing to match lowest rates as per
requirement of the company. Before publication of the Transport Tender,
Existing Dealers are permitted to offer “EOI” to induct their Tank lorries
for carrying their own loads on terms and conditions given in the Tender.
Dealerships commissioned after the tender is finalized are permitted to
offer their Tank lorries on the same terms and conditions for carrying
their own loads.
(d) HPCL has informed that after 2017 for North Central Zone dealer''s offer
were received for 851 Tank Trucks (TTs) through EOI, out of these,
Letter of Acceptances (LOAs) have been issued to technically qualified
821 TTs. 806 TTs of these successful TTs have been inducted by
dealers. In addition 80 TTs were inducted for the dealerships
commissioned/revived/re-instated after the due date of EOI for meeting
their own supplies.

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