Cooking gas distributors are complaining of non-fuel revenue goods being dumped on them by oil marketing companies (OMCs). These are goods such as rubber tubes, gas stoves and aprons, which they are being forced to sell each month.
One distributor said he had around 900 orange-coloured rubber tubes in stock. “It is enough if consumers change these tubes once in five years. In such a case, how many customers do you think will change the tube? Also, many apartment complexes have shifted to reticulated connections where the cylinders are kept at a distance away from the building and the gas is sent by pipes. Such households do not need the tubes. Also the stoves that we are given for selling are standard models with two burners. Many consumers these days have stoves with three and four burners,” he explained.
Another distributor alleged that these goods were priced above what was available in the market. “You can buy the same hose for ₹99 on Amazon, whereas, the oil marketing company sells it at ₹190. Look at the price difference. The customers would rather buy hoses and stoves at their own convenience,” he pointed out.
The situation is the same at all three oil marketing companies. “They are not only pushing non-fuel revenue items but also the 19-kg commercial cylinders. There is no written communication from the oil companies. They just send these cylinders as part of our consignments. In urban areas, only small restaurants are our customers. They don’t pay us daily, and request credit facilities. If we deny it, they will go to some other agency,” said a distributor. The private brands were selling commercial cylinders at almost the same price of domestic cylinders. “Most small shops are opting for these brands,” the distributor said.
A distributor said he runs out of storage space regularly since these items occupy a major portion of the godown. “In urban areas, we can store only 8,000 kg of gas at a time. If we keep the commercial and Nanocut cylinders, we will end up flouting norms. If there is a safety inspection, we will be in trouble.”
An oil industry official said the companies encourage distributors to make an income from non-fuel revenue too. “This is to help increase their revenue. Many distributors like this revenue model and excel in NFR.”
Meanwhile, other petroleum dealers have been saying that the oil companies are dumping branded fuel on them. “Even small retail outlets that find the going tough are told to meet the target. With fuel prices being very high, consumers dont want to spend on branded fuels unnecessarily,” said a dealer.
