With extortion complaints up 40% this year and sales down by half since ethnic violence erupted in 2023, fuel dealers warn they cannot absorb illegal levies under fixed MRPs.
By PC Bureau
December 11, 2025 – In a sharp escalation of threats facing Manipur’s fuel sector, the Manipur Petroleum Dealers Fraternity (MPDF) has announced a complete shutdown of all petrol pumps across the Imphal Valley and its peripheral areas on December 13. The decision follows a chilling bomb threat at a filling station last week, coupled with relentless extortion demands that have left dealers on the brink of collapse. The move signals a deepening crisis in a state where insurgent groups continue to target essential services amid ongoing ethnic unrest.
The shutdown—impacting outlets run by Indian Oil, Hindustan Petroleum, Bharat Petroleum, Assam Oil, Goal Bio Oil, and Nayara Energy—will halt fuel distribution for an entire day. Owners said the decision is both a plea for protection and a necessity to safeguard staff and customers.
“Petrol pumps are essential service providers, yet we are being singled out for threats and illegal demands,” the MPDF said in a December 10 press release. The fraternity warned that any recurrence could trigger an indefinite state-wide closure, crippling transport and emergency services.
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The Trigger: A Grenade and a Threatening Letter
The immediate flashpoint was a December 6 incident at the Ibudhou Pakhangba Filling Station in Keikol, Imphal East, where staff discovered a live hand grenade hidden in a restroom toilet, alongside a handwritten extortion letter threatening “dire consequences.” Bomb disposal units defused the device, but the psychological impact has been severe.
This is part of a broader pattern across the valley’s 150-plus fuel outlets. Dealers report anonymous calls, social media warnings, and even abductions to enforce “donations” ranging from lakhs to crores. Unlike other commodities, fuel prices cannot be inflated to offset extortion because they follow government-fixed MRPs. “We contribute Rs 25–30 crore monthly to the state through VAT. How can we absorb illegal taxes when we cannot increase consumer prices?” an MPDF spokesperson asked.
Fuel sales have already fallen sharply since ethnic violence between Meitei and Kuki-Zo groups erupted on May 3, 2023. Curfews, blockades, and shrinking consumer confidence have pushed smaller operators toward financial ruin. The December 13 shutdown is expected to significantly disrupt daily life, prompting commuters to stock up, though black-market fuel sales remain common.
Who Is Behind the Extortion? A Tangled Insurgent Web
Police have yet to identify the group responsible for the Keikol threat. The letter carried no signature, a typical tactic to evade detection. However, most extortion in the valley is carried out by banned Meitei insurgent outfits such as PREPAK, KCP, PLA, and the UNLF (Koireng faction). All are proscribed under the Unlawful Activities (Prevention) Act.
Recent actions highlight the scale of the crackdown:
- December 7: Ten cadres from PREPAK and UNLF(K) were arrested across Imphal West, Thoubal, and Kakching for extorting truckers and civilians, with arms like SMG carbines seized.
- November: Four PREPAK members were arrested for threatening cultural organisations and businesses.
- October: KCP(PWG) operatives were held for targeting gyms, bakeries, and schools.
State police data shows a 40% rise in extortion complaints in 2025, with fuel stations among the most targeted businesses. MPDF has urged Chief Secretary Vineet Joshi and DGP I. Karthikeyan to intensify patrols and intelligence-sharing.
Fuel and Conflict: A Volatile Mix
Manipur, still under central rule, has seen more than 250 deaths and 60,000 displaced since 2023. Fuel scarcity has repeatedly been weaponized through blockades. Petrol pumps—employing 10–15 workers each—represent economic lifelines and daily stability. MPDF called the shutdown a “last resort,” echoing earlier protests by traders and transporters.
Authorities have promised enhanced security on December 13, but confidence remains low. “We are not against any community; we serve all Manipuris. Stop this suppression of essential services,” the MPDF appealed.
For now, the grenade left in a petrol pump restroom stands as a stark reminder: in Manipur’s fractured landscape, even refueling has become a perilous act.
