Corruption behind LPG transportation

KOCHI: Even as the association of LPG bullet tanker operators warned that it will be forced to stop operations if steps are not taken by the state government to improve road conditions for the ensuring safe transport of hazardous products, reliable sources reveal that there prevails an unholy alliance between top level officers in Indian Oil Corporation (IOC) and bullet tanker operators.

The LPG from other states is brought to Kerala while those produced at Cochin Refinery is being transported to other states. For this deal, which reaps crores of rupees, more than 200 bullet tankers are used daily in Kerala.

Sources within the Cochin Refinery allege that there is corruption behind the reluctance of public limited company IOC in buying petroleum gas from Cochin Refinery which works under Bharat Petroleum.

A senior officer at Cochin Refinery said there is a big lobby of tanker operators working at Namakkal behind bringing LPG to Kerala.

The average LPG consumption per month in Kerala is 58,000 tonnes. Half of this is meant for IOC. Though the Cochin Refinery produces 40,000 tonnes of LPG per month, it is used only by Bharat Petroleum and Hindustan Petroleum. They transport LPG outside Kerala. The IOC, which has three bottling plants in Kerala, brings more than 80 percent LPG to Kerala from Mangalore.

A sum of Rs 25 crore is needed to lay pipe for transporting LPG from Cochin Refinery to the bottling plant of IOC at Udayamperoor in Ernakulam district. IOC is not willing to lay pipe as that may lose huge amount of money from tanker operators as commission.

Diesel worth crores of rupees is used when LPG is transported by tankers. After unloading, the tankers return without any load.