The Times of India 22.02.2013
Bulk diesel subsidy gone, Vadodara Municipal Corporation looks to reduce fuel bill
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.
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.
