Chennai: Transport companies dealing in Bulk LPG are on strike across south India, demanding a higher tariff. This has triggered fears of LPG shortage for domestic consumers.
3200 bulk LPG tankers are off roads since Saturday, affecting movement of LPG from refineries to bottling plants.
Transporters say Indian Oil Corporation (IOC) which revises tariff every three years has launched a price band tender system which doesn't allow more than five percent hike for three years. This, they say is non-viable.
"The industry cannot survive with this tariff taking into account the rising fuel price, toll fee, driver wages and investment for vehicle safety and tracking," says Mr Karthikeyan, Secretary of the South Indian Bulk LPG Transporters Association, based in Namakkal.
Operators in north India, however, work on a lower tariff.
"They are killing the industry, and are compromising on welfare of drivers and safety," said Mr Karthikeyan.
There have been three rounds of talks with Indian Oil Corporation (IOC), and Bharat Petroleum Corporation Limited (BPCL), but all three attempts have failed.
Oil companies have said that they can manage for ten days with existing stocks.
"Domestic consumers need not panic, we've sought the central government for help in negotiations. We hope to resolve this soon", said a senior IOC official.