State ideal to develop modern marketing system: Union Minister

Minister appeals to shed preconceived notions

Union Petroleum Minister Dharmendra Pradhan on Saturday said Karnataka was an ideal destination for developing innovative, modern and consumer friendly marketing mechanisms.

Addressing the dealers at the opening of two-day ‘Thaila Samagama - 2014’ organised by the Akhila Karnataka Federation of Petroleum Traders, in association with the Federation of Mysore Petroleum Traders at Hotel Lalith Mahal Palace here, the Minister said, in the wake of mounting complaints against the existing Marketing Discipline Guideline (MDG), there was need for introducing changes. “In a welfare state, good economy can be assured,” said the Minister, substantiating the identification of Karnataka for development of innovative marketing mechanism. The State has a conducive atmosphere in urban and rural markets, he added.

Stating that petroleum products would be brought under the pending Goods and Service ttxes (GST) Act, Pradhan said that there should be a bandwidth for tax on petroleum products in the States.  

“I have written to all the chief ministers for having a bandwidth for tax,” the Minister, said appealing to the local elected representatives, especially MLA Vasu who was present on the dais, to take an initiative to persuade the State government in this regard. Pradhan also drew an analogy between Goa and the other States, as the former has emerged as a most favoured destination for refuelling  vehicles.

Promising that his ministry would take a serious note of the grievances to be addressed, he called upon the various stakeholders in the petroleum industry like oil and marketing companies and retail outlets to shed their pre-conceived notions and join hands for a better future.

Earlier, submitting an 18 point memorandum to the Minister, president of Federation of Mysore Petroleum Traders, S K Dinesh laid emphasis on a proper feasibility report. The mushrooming of outlets belonging to different public sector units had triggered cut throat competition among the PSUs.

Dinesh cited an example in K R Nagar in the district, where for a population of 50,000, five to six outlets were functioning, with majority of them on the verge of shutdown. District level Coordination Committee that ceased, has to be re-constituted to help the dealers find solution, he urged.

President of Akhila Karnataka Federation of Petroleum Traders, B R Ravindranath explained the  unsavoury experiences of the dealers, especially due to the unabated pilferage in the products at the time of transit.