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Corporate Feb 19, 2013

Mining ban deals blow to diesel sales in Goa

Panaji: Oil companies in Goa have reported plummeting sales in diesel to the extent of 15 percent in general and 90 percent in the iron-ore rich belt of the state, due to ban on the mining industry.

A senior Indian Oil Company (IOC) official said that total retail sales of IOC, Bharat Petroleum (BP) and Hindustan Petroleum Limited (HPL) have been down by almost 15 percent since September last year when mining operations stopped.

Falling sales. Reuters

Falling sales. Reuters

These figures are against the 12 percent year on year growth reported by all the companies combined in Goa, he claimed, adding that the petrol stations located in the mining belt are worst affected.

"The sale of diesel has gone down by almost 90 percent compared to last year in these outlets which were basically dependent on the mining activity," the official stated.

The combined figures available from IOC, BP and HPL indicate that the retail diesel sale went down by 17.25 percent, 17.93 percent and 17.48 percent in October, November and December last year respectively.

This year till January, the retail sale of diesel plummeted by 12.54 percent. All oil companies together have 106 diesel outlets in Goa, of which almost 30 percent are in the mining belt, largely dependent on the mining activity.

"The sale for the mining activity is zero since September month. The total diesel sales are down by 90 percent at the pumps which are located in the mining belt," said Sandesh Prabhu, who runs Chaitanya Petrol Pump at Dharbandora, a mining heartland.

Prabhu said that he is spared from major loses as his station is located on the highway and hence has reported only 60 percent reduction in diesel sales.

"There are many petrol stations who are exclusively dependent on mining activity. Their situation is terrible," he said, adding that besides retail sale, there are direct sales to companies for running generators, screening plants and other mining equipments, which has also stopped completely.

PTI


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