NEW DELHI: Petrol pump dealers in 24 states have decided not to buy diesel and petrol from oil firms on Tuesday in protest of the dealers' commission, which has not been changed in a long time, according to a statement released on Monday.
Around 70,000 locations in 24 states have decided not to purchase fuel from oil marketing companies. "Dealers from 24 states will join the 'No Purchase Petrol and Diesel' campaign to draw attention to the financial distress of petrol station owners across the country," said Anurag Narayan, President of the Delhi Petrol Dealers Association.
He said at a press conference hosted by the Petrol Pump Dealers Association that the campaign to not buy fuel from oil companies on Tuesday will be taken by the lack of increase in dealer margins over the last five years, as well as issues with losses incurred as a result of government excise duty revisions.
The dealers' association said that OMCs and the dealers' organisation had agreed to update the dealers' margins every six months, but this has not been done since 2017. Fuel prices have nearly doubled since 2017, causing businesses to double their working capital, resulting in higher loans and bank interest, as well as increasing evaporation losses, according to the report.
"The dealer commission is simply a reimbursement of our expenses, which have risen dramatically in the last five years, such as salaries, electricity bills, and other items. Our demand is that OMCs amend the dealer commission, which has hitherto been neglected "Narayan said.
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