Bulk LPG transport operations for Indian Oil Corporation resumed across southern India after a disruption of nearly 15 hours on Monday, triggered by payment-related disputes between tanker operators and the company.
Loading activities, which came to a halt around 6 a.m., restarted after IOC officials assured transporters that pending dues—estimated at around ₹50 crore—would be cleared within the next two days.
K. Sundarrajan, President of the Southern Region Bulk LPG Transport Owners’ Association based in Namakkal, confirmed that nearly 1,000 tanker trucks had suspended operations earlier in the day. “Our members have now resumed loading following assurances from IOC on payment of outstanding dues,” he said.
The disruption impacted LPG movement from key supply points including Chennai, Palakkad, Thoothukudi, Mangaluru, and Bengaluru. Each tanker typically carries around 18 tonnes of LPG to bottling plants across the region.
Transporters cited prolonged delays in payment for completed trips despite submission of necessary documents. Additionally, toll reimbursements have reportedly remained unsettled for up to five years, intensifying financial strain on operators.
Concerns were also raised over deductions under the new 2025–2030 transport contract. According to Sundarrajan, amounts ranging from ₹10 lakh to ₹18 lakh per transporter were deducted without prior notice, despite bank guarantees being duly submitted.
The association had earlier met senior IOC officials on April 9 to present their grievances, attributing the issue to possible discrepancies within the company’s finance processes. Operators argued that any such discrepancies should have been communicated for resolution rather than leading to unilateral deductions.
Highlighting operational challenges, Sundarrajan noted that running a tanker over a distance of 1,000 km requires a working capital of at least ₹60,000, covering fuel, driver wages, tolls, and maintenance. “Delayed payments are making it increasingly difficult to sustain operations,” he said.
The association has demanded immediate clearance of transport dues, settlement of toll claims, refund of deducted amounts, and improved transparency in financial communications.
Earlier this month, the group had warned IOC of a potential “operational crisis” if payments were not released within 10 days.
An IOC official stated that discussions with transporters are ongoing and expressed confidence that the matter would be resolved soon. The company also maintained that there has been no disruption to LPG retail distribution.
