Bulk LPG transporters claim latest tenders favour large operators

The All India Bulk LPG Transporters Federation has approached Oil Minister Hardeep Singh Puri claiming that the tender for ferrying bulk LPG does not have the “experience” clause, which is vital for transporting hazardous materials such as cooking gas.

The issue relates to the tender for bulk transport of LPG that is floated by oil companies—Indian Oil Corporation (IoCL), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL)—once every five years.

The current agreement period ends on August 31, 2025. The tanker operators are protesting against the latest tender, which was issued on March 1, 2025.

In a letter to Puri on Thursday, All India Bulk LPG Transporters Federation President Khushwant Singh said “A key issue that remains unaddressed in the corrigendum is the absence of an experience clause, which is particularly vital in the transportation of hazardous materials like LPG.”

These tankers ferry liquefied petroleum gas (LPG) from oil refineries to bottling plants.

To highlight this, Singh referred to the recently published tender for propylene transportation by IoCL, where a pre-qualification clause for “Similar Nature of Job” was included. This clause specified that bidders must have experience in transporting pressurised hydrocarbon tank trucks, such as LPG, Butene, Propylene, and Butadiene.

“Surprisingly, no such pre-qualification criteria have been included in the LPG tender 2025-30, despite the substantial scale of the tender and the risks associated with transporting LPG. Even the tragic Jaipur incident has not prompted the tender coordination committee (TCC) or the oil industry to consider the public safety implications more seriously,” he added.

In December 2024, an LPG tanker caught fire after an accident on the Jaipur-Ajmer highway leading to several casualties.

“Transporters across the country share similar grievances, with many considering withdrawing from operations as the tender process seems rigged in favour of large fleet operators,” the industry body claimed.

Large fleet operators

After the tender was floated, tanker owners raised their issues in pre-bid meetings following which a corrigendum was issued. However, the industry body claims that their concerns have not been addressed.

“It is evident that the relationship between oil industry officials and large fleet operators has grown too close to the point where the pre-qualification criteria (PQC) are being tailored to benefit only a select few, large fleet operators,” Singh claimed.

This is evident in the recent propylene transportation tender, which included restrictive clauses like the ownership requirement for tank trucks, ensuring that only large operators could bid. Similarly, the LPG tender 2025-30 seems to have been drafted in a way that favours large fleet owners and creates barriers for smaller operators, leading to an unfair advantage for the chosen few, he added.

“As it stands, every bulk LPG transporter in the industry is deeply aggrieved by the published 2025-30 tender and the lack of response from the TCC and industry officials. Associations in the southern and northeastern regions have already announced a halt to operations effective March 27, 2025 due to the industry’s failure to address their concerns,” Singh said.

The Southern Regional Bulk LPG Owners’ Association started an indefinite strike on Thursday across Tamil Nadu, Karnataka, Andhra Pradesh, Telangana and Puducherry, with more than 5,500 LPG tanker lorries having gone off the road.

“We once again urge your intervention to call for a meeting with the Executive Directors of the three oil companies and request the rollback of the published 2025-30 tender until the proposed KGPL pipeline is commissioned,” the industry body urged the Minister.