Motorists put to hardship as more fuel outlets close in and around Chennai

Oil industry sources attribute a combination of factors as reasons for the dip in the number of outlets. These include high real estate prices, sharp decline in pump throughputs, growing competition, and meagre dealer commission

At least 70 retail fuel outlets in and around Chennai have been closed over the last few years, leading to motorists driving long distances in search of petrol, diesel, and gas.

G. Ramakrishnan, a long-time resident of the city, said several petrol bunks where he had been refuelling had shut down now. “I have to spend more time just to drive that distance so I can fill up the fuel tank. It has become very inconvenient as petrol bunks near my house have just vanished. Some became parking lots while others were rebuilt as shopping or office complexes,” he said.

Oil industry sources attributed a combination of factors as reasons for the reduction in the number of retail fuel outlets, which include high real estate prices, sharp decline in pump throughputs, growing competition, and meagre dealer commission. They also site how expenditure in operating the outlets have sharply risen following an increase in labour and power charges.

What this has meant for motorists is that they have to spend precious fuel looking around for outlets to replenish their tanks.

“In just the last six months, one outlet in Mylapore closed due to Metro Rail work, one in Santhome and another in Adyar opposite have also closed. If I don’t fill up at the bunk at Adyar depot, I won’t find another till the High Court in the beach road direction. I have to take a detour to the Adyar terminus or Dr. Radhakrishnan Salai to refuel. I have to choose different routes that have more traffic just so that I can fill up,” said Karthick, who travels to Parry’s Corner regularly.

A long-time retailer said it was no longer viable to run fuel outlets in the city. “Most bunks are on leased lands. With the boom in real estate, landowners prefer to vacate the outlets and build something that will fetch them more in terms of rent. Some outlets that have old leases pay as less as ₹7,000 per year. Also, the dealer margin, which saw a meagre increase recently, does not cover our expenses. A new bunk costs ₹2 crore to set up,” he said.

Official sources in the office of the Coordinator of the Oil Industry at the State-level said they had written to the State government seeking allotment of lands for setting up fuel outlets inside the core city.

“We cannot have short-term leases as it does not make sense. It takes over a year to get one outlet up and running, and with the kind of physical infrastructure that has to be installed, it is not possible to dismantle it so easily. More fuel outlets are coming up in the outskirts,” the official said.

Published - November 05, 2024 09:17 pm IST