Petroleum dealers’ consortium flags forced premium fuel sales at HPCL pumps

The Consortium of Indian Petroleum Dealers (CIPD) has raised serious concerns with Hindustan Petroleum Corporation Limited (HPCL), alleging that petrol pump dealers in several regions are being pressured to promote and sell Power Petrol (Premium) instead of ordinary petrol (EBMS).

In a representation addressed to HPCL’s Director Marketing, with a copy marked to the Executive Director (Retail), CIPD Hon. General Secretary K. Suresh Kumar stated that consumers have the fundamental right to choose their preferred fuel and dealers cannot force or influence them to purchase premium petrol.

The dealers’ body further said that retail outlets cannot legally deny supply of ordinary petrol to consumers, especially when there is an approximate price difference of ₹9 per litre between ordinary and premium fuel.

CIPD noted that all three Public Sector Oil Marketing Companies (OMCs) have already clarified that there is no fuel shortage, making restrictions on EBMS supply contradictory to official statements.

The letter also highlighted concerns regarding indent execution, alleging that some Regional Offices are refusing to release valid fuel indents unless dealers agree to convert EBMS orders into Power Petrol orders. According to CIPD, dealers have reported that Sales Officers are linking indent approvals with mandatory premium fuel orders.

CIPD pointed out that such restrictive practices appear to be limited to HPCL, while dealers associated with Indian Oil Corporation (IOCL) and Bharat Petroleum Corporation Limited (BPCL) continue operations without similar mandates in the same regions.

The association has urged HPCL to ensure that indents are executed exactly as submitted, provided dealers comply with the “Day End Credit” system and payment protocols.

CIPD further warned that any artificial restriction on the availability of ordinary petrol could amount to a violation of the Essential Commodities Act, 1955. The body called for immediate intervention from HPCL management to ensure fair processing of indents and to prevent coercive sales practices, while safeguarding the interests of both consumers and petroleum dealers.