Petroleum dealers in Manipur have declared a complete shutdown of petrol pumps across the Valley and surrounding areas on December 13 due to escalating bomb threats and safety concerns for station workers and customers. This decision follows the discovery of a hand grenade within the restroom of the Ibudhou Pakhangba Filling Station on December 6, which was accompanied by a threat letter demanding compliance with undisclosed conditions. The Manipur Petroleum Dealers Fraternity emphasized that persistent threats, increased extortion attempts, and intimidation of their staff have severely hampered their ability to operate safely. Historically, these dealers have provided essential services by keeping fuel stations functional around the clock during emergencies, as required by government mandates.

The fraternity also outlined the vital economic contributions of fuel stations to the state, noting that they are significant revenue generators through Value Added Tax (VAT) at rates of Rs 19.56 per litre for petrol and Rs 10.11 per litre for diesel, which collectively generate Rs 25 to Rs 30 crore monthly based on sales. Each retail outlet employs between 10 to 15 permanent staff, alongside numerous indirect workers such as drivers and handymen, making fuel stations crucial for employment in the region. Additionally, these stations engage in community development by supporting various projects through Corporate Social Responsibility (CSR) initiatives in collaboration with civil society and local organizations.

The fraternity pointed out that unlike other sectors that might raise prices to counteract illegal taxes or extortion, petrol stations are bound to government-fixed prices, offering them no means to alleviate the financial burdens imposed by unlawful pressures. The persistent threats not only pose risks to public safety but also disrupt the state’s revenue mechanisms and the integrity of government-regulated fuel supplies. Since the onset of the ongoing crisis on May 3, 2023, fuel stations have experienced a staggering 50 percent reduction in sales. In light of these challenges, the fraternity has urged the government to take immediate action and warned that any further bomb threats or severe monetary demands could force them to enforce an indefinite statewide closure of all petrol pumps.