Guwahati: The North East India Petroleum Dealers’ Association (Greater Guwahati Unit) is staging a “no petrol and diesel purchase protest” on May 31 to draw the attention of the oil marketing companies for immediate enhancement of dealer margins.
In a memorandum to oil marketing companies such as IndianOil (Assam Oil Division), Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited here, the association intimated the PSU companies about the “no purchase” protest in support of its long-pending demands.
The association’s long-pending demands include immediate release of enhanced dealer’s commission, which has been held up since the year 2017.
“The price of fuel has doubled and the investment incurred by the dealers has increased manifold, including the mandatory stock which the dealer must maintain as per company requirements,” Rajib Goswami, NEIPDA (GGU) president stated in the memorandum.
“Another issue that has been of great concern to the trade is the reduction of excise duty. The sudden drastic reduction in price of petroleum products because of excise is more damaging than the rate of fluctuations caused due to changing international crude prices,” Goswami said.
“Since 2017, excise duty has increased on three occasions and that too without any change in the retail sale price (RSP) of fuel, thus passing on the benefit of this increase to the oil marketing companies only and not the dealers. Whereas, on the last two occasions, the excise duty resulted in downward revision in RSP resulting in huge financial loss only to the dealers, thereby eroding their working capital and increasing their bank liabilities,” he stated.
“The loss incurred by dealers escalated as both the reductions were done just before the commencement of holidays/weekend when the stocks were at maximum in the retail outlets (ROs) and a fact known to all. We are confident that the government can ensure the well being of the dealers, and the dealers can be brought under the same ambit by introducing special provisions wherein the dealers should neither result in their gain or loss owing to variation in excise rates,” Goswami said.
The association had earlier this month conditionally agreed to defer its plan to indefinitely close all petrol depots within its jurisdiction, following a request by the Kamrup Metro district administration.
The association had earlier threatened an indefinite closure of all petrol depots from 5am of May 16 next if the oil companies fail to meet its demand for redressal of the problems arising out of cancellation of load delivery and short delivery of fuel.
According to the terms set by the association to defer the indefinite shutdown of fuel depots, “The reasons for cancellation of load at the terminal (TOP) must be assigned to the dealer also, informing as to whether the next load has been sent as per indent.”
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