BENGALURU: After the Karnataka and the Union Governments announced a cut in petrol and diesel prices, effectively bringing it down by Rs 12 and Rs 17, respectively, fears of fuel smuggling and blackmarketing have increased in the border areas.
Many fuel stations along the state’s borders with Maharashtra, Andhra Pradesh, Telangana, Tamil Nadu and Kerala, which were selling about 3,000 -5,000 litres of fuel every day till about three days ago, are now selling up to 15,000-18,000 litres per day. Of the nearly 6,500 fuel stations across the state, about 300 are in the border areas.
Industry sources pointed out that large volumes of fuel from the outlets can be transported in bowsers (mobile fuel dispensers). Former Karnataka Petroleum Dealers’ Association president B R Ravindranath said smuggling is a real challenge. The Bangalore Petroleum Dealers’ Association president Dr A Balaji Rao stressed, “Unscrupulous dealers using bowsers is a serious problem. It is a grey area and we have raised complaints earlier too.’’
Dr Rao also confirmed that there has been a steep hike in fuel sales across fuel stations in border areas over the past few days. Ravindranath too concurred that the volumes have gone up by up to ten times. Some bunks, which were selling about 2,000 litres, are now selling up to 10,000 litres every day. This means, the dealers in the border areas have employed more staff to dispense petrol and diesel, he noted. Ravindranath estimated that it could go up to 20,000 litres per day.
Karnataka witnessed sale of about 60 lakh litres of fuel every day, but after the drop in prices the volumes have gone up substantially. Some sources suggest that the shortfall in taxes that Karnataka faces is in the range of Rs 2,000 crore, but with higher sales volumes, a good portion of it could be recovered.
An official from the petroleum industry said normal fuel sale volumes have not started because of the holiday season and one can expect higher volumes from Monday once the holidaying crowds return home. On the fears of smuggling, officials admitted that it is a serious issue, but added that it is up to the local administration to act.