IndianOil Refutes Dues Allegation, Says LPG Bulk Carrier Operations Resume; Supplies Uninterrupted Across India
“Partial payments are being released and a timeframe has been given for submitting the rectified BGs,” says the IOCL statement
Indian Oil Corporation Limited (IndianOil) on Monday strongly rebutted allegations by LPG bulk transporters regarding pending payments, asserting that the issue has been misrepresented and pertains specifically to an extended contract period during which discrepancies were found in the Bank Guarantees submitted by transport operators.
The clarification came after some LPG bulk transport contractors in southern India reportedly halted loading operations earlier in the day, alleging that payments worth nearly ₹50 crore were pending from the PSU and warning of disruptions in movement from key refineries to bottling plants.
However, IndianOil forcefully dismissed apprehensions of any financial deadlock affecting LPG movement and said the dues being referred to are not routine operational payments, but are linked to an extended contractual arrangement where the Bank Guarantees (BGs) furnished by certain transporters were found to be discrepant.
“The pending payment mentioned is related to the extended contract with the transporters for which there were discrepancies in the Bank Guarantees submitted by them,” the company clarified in an official statement.
IndianOil further stated that sustained discussions have already been held with the transporters and the issue is being resolved in a structured manner.
“Partial payments are being released and a timeframe has been given for submitting the rectified BGs,” the PSU said, indicating that corrective compliance from transport operators was necessary before full financial settlement.
According to the company, LPG bulk carriers have now resumed operations following the discussions, effectively ending fears of a prolonged loading disruption.
The PSU also underlined that domestic LPG consumers need not worry as the temporary transporter unrest has had no bearing on nationwide fuel availability.
“LPG supplies remain uninterrupted across India and sufficient stocks of LPG are available at our supply locations,” IndianOil said.
Reiterating its commitment to household energy security, the Maharatna oil major added that it remains focused on ensuring reliable, safe and uninterrupted LPG access to millions of families across the country.
The transporter protest had briefly raised concerns as loading activities were reportedly impacted at select southern installations connected to refineries in Chennai, Palakkad, Thoothukudi, Mangaluru and Bengaluru.
Yet, IndianOil’s categorical clarification suggests that the dispute was less about non-payment of admitted dues and more about contractual compliance linked to valid Bank Guarantee documentation during the extended contract phase.
With bulk carrier movement now resumed and stocks declared adequate, IndianOil has sought to send a clear message that India’s LPG distribution chain remains stable and uninterrupted despite the brief operational standoff.
