Congress leader says PMC, PMPML pay Rs 159 a litre for diesel selling at Rs 99, a Rs 15 crore yearly burden

The Pune Municipal Corporation (PMC) and the Pune Mahanagar Parivahan Mahamandal Limited (PMPML) have been alleged to be paying far more for diesel than the prevailing market rate. Congress group leader and corporator Adv. Ramchandra alias Chandushet Kadam raised the issue in a proposal submitted to the PMC standing committee. He alleges that this price difference alone puts an additional burden of about Rs 15 crore a year on the corporation.

The proposal seeks an examination of the fuel rates charged by Hindustan Petroleum Corporation Limited (HPCL) for PMC and PMPML vehicles. It also says the state government should intervene through the municipal commissioner so that both bodies get diesel and petrol at market rates.

The corporation buys fuel in large quantities for the vehicles of its motor vehicle department and other departments. These include garbage collection vehicles, fire brigade vehicles, excavators, earthmovers, generators and other machinery. PMPML also needs fuel for diesel buses and other vehicles running from its various depots.

According to the proposal, the corporation is buying diesel at Rs 159 a litre, against the market rate of Rs 99 a litre. The proposal also claims that an order issued by the district collector is causing this additional burden. The rates cited in it and the order have not been independently verified.

The proposal also states that the PMC motor vehicle department takes 8,000 litres of diesel a day. Calculated over 26 days a month, this comes to 2.08 lakh litres. At a difference of Rs 59 a litre, the extra cost is Rs 1.22 crore a month and about Rs 14.73 crore a year.

The proposal also demands a check on the legal and administrative provisions under which fuel rates and categories applicable to commercial or private entities are being applied to PMC and PMPML. It points out that the PMC is a local self-government body, while PMPML provides a public passenger transport service.

"The municipal corporation is not a corporate or multinational company," Kadam said, alleging that the corporation's vehicle depots have become notorious for mismanagement. He asked why the corporation pays Rs 159 when the market rate is Rs 99 a litre.

Kadam said, "The corporation's vehicle depot has become very notorious for its chaotic functioning. The municipal administration is buying diesel at Rs 159 that is available in the market at Rs 99 a litre. HPCL gives diesel to corporate companies without subsidy, but the Pune Municipal Corporation also serves citizens with money from taxes. It is a local self-government body, not a corporate or multinational company."

"Efforts could have been made at the state and central level so that bulk diesel purchase rules do not apply to the corporation, but the ruling party failed in this. It is unfortunate that the corporation uses hired machines instead of its own, saying diesel rates are unaffordable. Efforts should be made at the commissioner level so that the corporation gets diesel at a reasonable rate. The Congress party will go to court in this matter," Kadam also said.