NAMAKKAL: The Southern Region Bulk LPG Transport Owners' Association engaged with the Indian Oil Corporation Limited (IOCL) have said that their long-pending dues have still not been fully cleared even 14 days after assurances were given following their April 27 strike.
The association said that transport operations supplying bulk LPG were completely halted on April 27 when members went on strike, citing prolonged delays in payment settlements, including non-release of dues for nearly three months despite successful completion of trips and submission of all required documents.
Following negotiations with IOCL officials, they were allegedly assured that all pending dues would be cleared within two days, and an initial payment of around Rs 10 crore was released on the same day. Operations also resumed based on the assurance.
However, transporters said the remaining dues have still not been fully settled, with payments being released only in small and irregular installments, leaving several crores of rupees still pending and causing continued financial strain across the sector. They added that many operators were already under pressure due to existing loans and rising operational costs, and the delay has further worsened their financial stability.
Association president K Sundarrajan said, "Operating a single bulk LPG tanker for around 3,000 km per month requires nearly Rs 2 lakh towards diesel expenses, driver wages, toll charges, maintenance and other operational costs, apart from loan repayments and family expenses. Several transport owners are heavily indebted, with some individuals awaiting pending payments in the range of Rs 28-30 lakh."
He further pointed out that around 1,538 bulk LPG tankers are operating for IOCL in the region, of which nearly 500 transporters are still awaiting full settlement of their dues.
Another transporter, O K Paneerselvam, said that although bank guarantees were submitted under the 2025-2030 contract, payments have been repeatedly delayed citing alleged discrepancies in documentation, even though transporters maintain that all required papers were duly submitted in accordance with contract conditions.
"While I am owed around Rs 18 lakh since January, the payments are now being released only in very small instalments. In some cases, transporters have not received any payments at all," he said. He added that formal explanation was provided regarding the alleged discrepancies or deductions.
The association has therefore urged IOCL to immediately release all pending transport payments in full, clear long-standing toll dues without further delay, and refund alleged wrongful deductions made under the current contract. Efforts to reach IOC officials for a comment were unsuccessful.