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Govt Comes Into Action Over Petrol Diesel Shortage Implements New Rule

Govt Comes Into Action Over Petrol Diesel Shortage Implements New Rule

In many states of the country, the government has come into action due to the increasing shortage and supply of petrol and diesel. Universal Service Obligation has been implemented for all retail outlets. This rule will also be applicable for remote areas.

Now all retail outlets, be it PSU’s or private companies, they have to accept this. This means that companies will now be bound to follow the rules set by the government. Along with this, stock will also have to be maintained at the petrol pump.

Apart from this, the instructions of the government will also have to be followed for opening and closing the outlet. At present, this Universal Service Obligation (USO) was applicable only in the North East. The government has taken this decision to deal with the recent shortage of petrol and diesel. Now after this decision, private companies will not be able to do arbitrariness.

Private sector fuel retail companies are cutting supplies to reduce losses. “The government has now expanded the USO scope to all retail outlets (petrol pumps) including remote ROs,” the oil ministry said in a statement on Friday. Under this, the entities that have been granted retail petrol and diesel licenses will be “obliged to extend the USO to all retail consumers at all retail outlets,” the statement said.

Failure to comply with the rules may result in the license being revoked. “This has been done to ensure high standard of customer services in the market and to ensure compliance of USO under market discipline,” the ministry said. The move comes after stocks ran out due to a sudden surge in demand at some petrol pumps operated by public sector firms in states like Madhya Pradesh, Rajasthan, Karnataka and Gujarat. 

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Significantly, after the hike in crude oil prices, private fuel retailers cut operations as they could not compete with the low-priced rates of public sector companies.

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