A physique of petroleum sellers has appealed to the Prime Minister and State-owned oil refining and advertising and marketing corporations they characterize to chorus from abrupt reduction in petrol and diesel costs.
Favouring a phased reduction, the Consortium of Indian Petroleum Dealers (CIPD) cited the “substantial financial setback” the commerce suffered when fuel costs had been slashed in November 2021 and May 2022. “Additionally, our dealer commission has not been revised for several years, further exacerbating our financial challenges,” President Uday Lodh and General Secretary Ok.Suresh Kumar mentioned.
In its letter to the oil advertising and marketing corporations, CIPD mentioned “implement significant reductions in a phased manner, such as 50 paise or less per day as this approach will facilitate a smoother transition for dealers, minimising financial losses and aiding in business sustainability. It also wanted the OMCs to bear and reimburse losses incurred due to reductions beyond the net dealer margin.
The dealers body also sought “immediate halt to forceful sales strategies” in addition to a downward revision in the useless inventory degree because it imposed substantial monetary burden. “The dead stock level of 10% of tank capacity, primarily for protecting OMC devices in underground tanks has imposed a substantial financial burden on dealers. We propose a reconsideration… lower the level to minimum possible.”
The letter addressed to the Prime Minister mentioned “we are not contesting the necessity of reducing fuel prices… humbly request that such reductions be implemented in a phased manner. Abrupt reduction in prices, as experienced in 2021and 2022, had a severe impact on our viability and sustainability.”
