BUSINESS

B'desh diesel upsets oil PSUs

By Shyamal B Roy
June 01, 2005 12:01 IST
Public sector oil companies in West Bengal are worried about the illegal influx of large quantities of diesel from Bangladesh, saying it caused retail sales to dwindle in the border areas, besides depriving the government of revenue.

''We are worried. This influx is causing our sales to dwindle in the border districts. Our outlets there are showing a negative growth,'' Goutam Datta, general manager of Indian Oil Corporation and state-level coordinator for public sector oil companies said.

He said while the influx had so far been detected in most border districts, Malda, Nadia, Murshidabad and North 24-Parganas were particularly affected.

''Diesel is being brought in five-litre or 10-litre containers and jerry cans. There may be other means also, but we have not been able to identify them yet.''

The West Bengal Petroleum Dealers' Association estimates that about 40,000 litre of petroleum products, especially diesel, was being smuggled daily into the bordering districts from Bangladesh.

Stating that the influx was continuing because of the price differential, which was about Rs 12 per litre, Dutta said while severely affecting the public sector oil companies, the influx was also depriving the government of revenue.

Pointing out that the contraband diesel contained impurities, Datta said its wide-spread use was defeating the government's purpose in implementing Euro-III norms in Kolkata and adjoining districts and Bharat-II for the other districts from April 1.

Datta said that he had taken up the matter with the state government and the BSF, seeking their intervention in stopping the influx. ''After we complained, both the government and the BSF took some initial action, but nothing happened after that. There has to be a continuous vigil and action if the influx is to be checked.''

When contacted, Finance minister Asim Dasgupta was not very forthcoming on the matter. ''We have asked the police to look into it,'' he said.

BSF's outgoing additional director-general S I S Ahmed also declined to discuss the matter at any length. ''We are aware of the problem. We are trying to solve it,'' was all he would say.

''I can say with some responsibility that the diesel is entering West Bengal through eight to 10 points in Nadia district alone. Obviously, there are more entry points if other districts are taken into account. Can this happen without the knowledge of the BSF?'' asked Tushar Sen, working president of the WBPDA.

Sen said that the WBPDA's Nadia unit had written to the district magistrate, who forwarded the letter to the local BSF commandant for necessary action. ''The BSF wrote back, asking us to identify the entry points. It is not our job to do so, it is the job of the BSF.''

According to Sen, all petrol pumps in the border districts, including the ones directly controlled by the oil companies, are affected by the illegal influx of diesel from Bangladesh.

''Things have come to such a state that many pump owners are moving on to other businesses. If this continues, a large number of pump owners would be compelled to close shop.''          

Shyamal B Roy
Source: PTI
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