Kerala group opposes opening of more dealerships

Kerala State Petroleum Traders’ Association has opposed the move of oil marketing companies to allot more petroleum dealerships. The association working President Babu M. Pallissery said that the move to open more outlets would be counterproductive as each station would cost from Rs60 lakh (US$123,890) to 2 crore (US$412,967) whereas majority of the existing outlets are losing money. K. Kamalakshan, state general secretary of the association, said the consumption of petroleum products in Kerala has not increased proportionately to the increase in the number of motor vehicles. The number of vehicles had increased from 19.1 lakhs in 2000 to 44.42 lakhs in 2008, registering an increase of more than 132%. During the same period, the fuel consumption had gone up from 18.31 kiloliters to 21.46 kiloliters, a 17% rise. (August 22, 2009)