Dispensing Units at Pumps May Stop Working if Petrol Reaches Rs 100-Mark, Here’s Why

The petroleum industry may face a ‘Millennium Bug’-like challenge as the dispensing units (DUs), which can display a maximum price of Rs 99.99, might stop working.

New Delhi: Other than the unabated rise in prices, the petroleum industry is concerned over another anticipated challenge it may face if the petrol price crosses the Rs 100-per-litre mark.

According to a Times of India report, in the eventual case of the fuel prices reaching Rs 100 mark, the petroleum industry may face a ‘Millennium Bug’-like challenge as the dispensing units (DUs), which can display a maximum price of Rs 99.99, may stop working.

The fuel dispensing units at petrol pumps have been calibrated for digital display of prices in two digits with two decimal figures and can display a maximum price of Rs 99.99.

According to the report, in case the price reaches Rs 100-mark, the DU will display Rs 0.00 and the vendor will have to collect the additional Rs 100 from the consumer manually.

“When the DUs were digitised they didn’t foresee the day the price per litre petrol would touch Rs 100 and they have woken up to the reality at the last minute. The dealers and consumers will suffer because it takes times to upgrade the system and the retail industry may even come to a standstill,” M Prabhakar Reddy, chairman of All-India Petroleum Dealers Association was quoted by Times of India as saying.

The possibility of petrol touching the three-digit mark cannot be ruled out as it already reached Rs 90.84 per litre in Mumbai on Sunday, while it was sold for Rs 83.49 per litre in the national capital.

The report cited Vivek Mallya, independent director of Oil and Natural Gas Corporation Limited (ONGC) saying that the rising crude prices are not in government’s hands, adding that fuel selling at Rs 100 “will soon be a reality” if drastic steps are not taken.

DUs have been automated and the daily price changes are effected into them from the central server of the oil marketing company (OMC) that supplies fuel to bunks.
Once the server sends a three-digit price figure, DUs will either stop working or display zero rupee plus paise, says the report.