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If margins are too low then why do dealers not stop the operation and move on to other bussiness?
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Because there is no any Exit policy available till date. However, it's also one of the concerns often surface during the Dealer meets.
Most of the outlets are OWNED by the OMCs. Once the piece of land is leased & is handed over to Oil company, the landlord is entitled to receive just few thousand Rs as monthly Rent (irrespective of the market rate) & the dealership.
All the infrastructure therein belongs to the company & thus company then starts recovering their investment amount as License Fee from the dealer.
This LFR amount as I mentioned earlier, was just few paise per kl in the past has been increased by 11 folds by the OMCs since Aug 17. Surprisingly, there hasn't been any change in the Rent amount to be paid to the dealers.
Now, some facts about the Dispensing Units, which are owned & are duly maintained by the OMCs itsef.
Not many of the Common people know anything about the procedure of DU Calibration, still they go on blaming the dealers only for any damn thing they come across at the outlets.
I agree, there could be some mischievous people involved in malpractice, but the number is not that high as predicted by our fellow good friends over here & out there in the society also.
In Maharashtra, about 200 dealers out of 4.5k (that comes to 4%) are listed for misappropriations & tampering of the machines.
Here, I would like to reiterate, DUs are the property of OMCs & all the maintainance is also done by OMCs. The DU Calibration is performed annually by Weights & Measures Inspector from Legal Metrology Dept along with the technician/ Service engineer of DU manufacturer company. Then the units are sealed properly & handed over to the dealer. Don't forget, the company Sales Officer is supposed to inspect all this at least once in every 3 months.
Our state association FAMPEDA has raised many issues with the concerned authorities so as to kerb the malpractices in Petroleum business.
1. A detailed audit report duly signed by Co Officer, Service engineer & the dealer is produced ahead of DU Calibration everytime. Glad to inform you that it's observed only in Maharashtra till date.
2. Use of a 5 ltr Glass measure in stead of the regular brass/ metal Jar for quality check ups & Calibration is recommended & soon will be approved by the Controller, Legal Metrology.
3. Use of a Flow meter while decantation of products from tank lorry is also recommended since long, but still pending without any final decision.
4. I guess, OMCs would hardly be ready to discuss on the Exit policy. However, this would surely surface sooner or later.
Now, my suggestion to those who have experienced either short-changing of fuel or quality related issues at any retail outlet they visit-
1. In case if you suspect short-changing of fuel, ask for Quantity Check up with calibrated 5 ltr measure. Get the delivery checked at least twice, once with preset & then without preset. Remember, it's not an obligatory service, but mandatory for the dealer.
2. In case of suspected adulteration (which is very uncommon these days), ask for quality check up.
This test is carried out-
a. by using Whatman filter paper for Physical contamination &
b. by checking the density of the product for Chemical contamination.
You can find the reference density which is noted daily on a display board & in the density register also.
It hardly takes 5 minutes for the test.
3. In case of any dispute/ non cooperation by the attendant staff, you may contact the dealer or the Sales Officer whose names & contact numbers are displayed at the Sales room.
4. Alternatively, you may ask for the complaint book & note down your complaint in detail.
Hope, you won't be 'cheated' easily now whenever you visit the bunk for fueling next time..
Finally, may I ask here,
1. How many of you have ever asked for & also have performed the Q & Q check up tests at outlets, in case of having any doubt of being cheated ??
2. Has anybody ever escalated any complaint for any such incident of so-called 'cheating'?
My observation-
Consumer Rights is one thing that is discussed so often, but whenever it comes to Responsibilities, unfortunately, nobody cares.
People have a lot of time to spend on the Social media, but they are always seen in hurry in Social Life.
Thanks,