NE Petroleum dealers warn stir from May 31
Source: Chronicle News Service

Imphal, May 28 2022: Demanding higher commission/margin for petroleum dealers, the North East India Petroleum Dealers' Association (Greater Guwahati Unit) has warned of halting purchase of petroleum products from oil terminate from May 31 onwards.

The association informed IOC, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited about the proposed strike which would affect Manipur also as petroleum dealers of the state are part of the association.

In a written letter to the oil companies, the association lauded reduction of prices of petroleum products despite increase of crude oil prices throughout the world.

It also said that dealers trading petroleum products are facing immense difficulties due to non-increase of commission/margin.

There has been no hike of dealers' margin since the year 2017 but prices of petroleum products have now increased twice the prices thereby increasing expenditure burden to dealers, the association said adding that dealers are also facing immense difficulty in keeping necessary stock of the companies.

Discussions in this regard were held many times but there has been no conclusion, it added.

While informing that sudden reduction of central excise tax on petroleum products had badly hit dealers and increased their suffering, the association said excise duty had increased thrice since the year 2017 without affecting RSP for oils.

Increase of excise duty benefit oil marketing companies but dealers get no benefit.

On the other hand, reduction of excise duty twice recently affected working Capital for dealers in a big way thereby increasing loan taken by dealers from banks.

Normally excise duty reduction were made in the weekend particularly on Saturdays or one day ahead of holidays when dealers piled up huge stocks for sale and hence dealers suffer heavy loss when excise duty reduction came into effect at such times, the association said and stressed the need for having a provision which would not affect dealers at the time of increase or reduction of excise duty.

The association also maintained that oil marketing companies never compensate loss suffered by dealers at such times.

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