VADODARA: The removal of subsidy in bulk supply of diesel to organizations is pinching the cash-strapped Vadodara Municipal Corporation
(VMC). The civic body is now looking at avenues to reduce the burden of
its fuel bill and alternative means to get diesel for its vehicles.

The decision by the Centre last month to remove the subsidy on bulk
procurement of diesel has made diesel costlier for the civic body. Its
vehicles and machines guzzle a whopping 72,000 litres of diesel every
month.

These vehicles are supplied diesel from the vehicle pool
of the civic body. The diesel is procured at bulk rates. With subsidies
gone, the rate now stands at around Rs 64.40 against the market price
of diesel at around Rs 53.10. The issue was also discussed in the recent
budget meeting.

VMC standing committee chairman Vijay Shah
said the removal of subsidy would hit organizations like municipal
corporations and Gujarat State Road Transport Corporation
(GSRTC). He added the civic body was now examining options to both
reduce its consumption of fuel and ensure that it is procured at market
rates.

“We are considering if we can have a fuel station of our
own like the ones run by various cooperatives. We can float a
cooperative society that can run the fuel station. The other option is
that of procuring diesel from designated pumps,” Shah said.

VMC
functionaries are, however, skeptical of obtaining diesel from a
private fuel station fearing chances of irregularities. Also, it would
not be possible for heavy VMC machinery, trucks and other equipment to
get fuelled in the city due to busy roads and lack of space at petrol
pumps. But the option may have to be exercised at least on a temporary
basis as starting its own fuel station under the cooperative mode may
take quite some time.

Shah said the civic body was also looking at reducing diesel consumption by dividing the vehicle pool at two locations.

“Presently, vehicles have to travel to the entire VMC area from one
location leading to high fuel costs. With the division, this will come
down. In the long run, we plan to have a vehicle pool in each of the
four zones,” Shah said.