Dispute Erupts Over Mounting Dues (Image Credits: Pixabay)
Namakkal, Tamil Nadu – Bulk liquefied petroleum gas transporters resumed operations for Indian Oil Corporation across southern India late Sunday after halting loading for nearly 15 hours over unpaid dues nearing ₹50 crore. The stoppage began at 6 a.m., affecting nearly 1,000 tanker trucks that ferry LPG from key refineries to bottling plants. Operators from the Southern Region Bulk LPG Transport Owners’ Association cited prolonged delays in payments and toll reimbursements as the trigger for the brief disruption.
Dispute Erupts Over Mounting Dues
The transporters parked their vehicles early Sunday morning, halting the flow of bulk LPG from several refineries. Each truck carries about 18 tonnes of the fuel, essential for filling cylinders at bottling plants serving households and industries. K. Sundarrajan, president of the Namakkal-based association, explained that payments for completed trips remained outstanding despite operators submitting all necessary documents.
Operators also highlighted unpaid toll claims stretching back five years, adding to their financial burdens. Sundarrajan noted that running a single tanker over 1,000 km demands at least ₹60,000 in working capital for diesel, driver allowances, tolls, and maintenance. Without prompt settlements, many faced severe cash flow issues that threatened daily operations.
Grievances Under New Transport Contract
Tensions escalated further due to deductions from the recently introduced 2025-2030 transport contract. Association members reported losses of ₹10 lakh to ₹18 lakh each after Indian Oil Corporation withheld amounts tied to bank guarantees. Sundarrajan described these as unilateral moves by the company’s finance department, without prior notice or opportunity to correct any discrepancies.
The group had raised these concerns during a meeting with senior IOC officials on April 9, but no resolutions followed. In early April correspondence, the association warned of an impending “unavoidable operational crisis” if dues went uncleared within 10 days, placing responsibility on IOC for any fallout.
“The dues are worth nearly ₹50 crore,” Sundarrajan told reporters earlier in the day. “Without timely payments, it is becoming extremely difficult to continue operations smoothly.”
Swift Talks Lead to Resumption
IOC officials engaged quickly with the transporters, offering assurances that all pending payments would clear by Monday and Tuesday. This pledge prompted the association to restart loading operations, averting a longer standoff. Sundarrajan confirmed the move, stating members had begun hauling LPG again following the commitments.
An IOC official emphasized that discussions were underway and the matter would resolve promptly. The company maintained that retail LPG distribution faced no interruptions during the episode.
Supply Chain Spans Key Southern Hubs
The affected routes linked major refineries in Chennai and Thoothukudi in Tamil Nadu, Palakkad in Kerala, Mangaluru in Karnataka, and Bengaluru. These facilities feed bottling plants critical to the region’s LPG needs. While bulk loading paused briefly, the quick settlement ensured minimal ripple effects.
- Chennai refinery
- Palakkad refinery
- Thoothukudi refinery
- Mangaluru refinery
- Bengaluru facility
The episode underscores ongoing challenges in logistics payments within India’s energy sector, where timely dues keep vital fuel moving to consumers.
