“We continue to monitor the supply situation on a daily basis and follow up with dealers who do not place timely product indents,” the company said in an email response.
It also said a few dealers, who do not adhere to the revised USO (universal service obligation) guidelines have been issued show-cause notices.
“It is reiterated that supplies by Jio-bp is not intermittent and such misleading statements are made with the only objective to present Jio-bp in a negative light,” the company said.
ET had on November 19 reported that dealers of Jio-bp have formed associations to voice protest against policies of the company that they claimed are plunging their fuel retailing business into losses.
Jio-bp fuel retailers in the west and the south have formed associations in their respective regions, and have demanded an increase in their commission, regular fuel supply, fuel price parity with PSU retailers, and a clean exit policy.
While the dealers told ET that the company is not honouring the support packages it promised in July, the company in its mailed response said, “Despite being under no legal compulsion and for no fault of company, despite mounting cash losses to the tune of ₹2,000 crore, the company has voluntarily offered and rolled out support package to dealers.”
It added that it ensured all dealers are best compensated for the current fuel price situation emerging out of global geopolitical crisis situation.
“The support package has been temporarily suspended for few dealers who have not adhered to dealership agreement terms and conditions and flouted channel discipline guidelines,” Jio-bp said.