To protest the move by oil-marketing companies of revising petrol and diesel prices on a daily basis, the Federation of All India Petroleum Traders (FAIPT) has written to oil minister Dharmendra Pradhan that all petrol pumps associated with the federation will not sell or purchase petroleum products on June 16, the date when the new revision regime comes into effect.
The FAIPT statement also said that should the “decision of daily revision of petrol prices not be shelved”, the dealers will go on an indefinite ‘No Purchase, No Sale’ from June 24, till the time the decision is annulled.
On Thursday, three oil-marketing companies — IOCL, HPCL, and BPCL — had said that starting June 16, petroleum products’ prices will be revised daily to minimise volatility and to prevent sudden increase or decrease in prices. Currently, retail fuel prices are revised fortnightly.
In a statement by FAIPT, its spokesperson Sukhminderpal Singh Grewal said that in the five cities where the pilot of this project was conducted — Udaipur, Jamshedpur, Puducherry, Chandigarh and Visakhapatnam — petroleum dealers “have already burnt their fingers”.
“They are crying at the inventory loss that they have already suffered due the fluctuations in the daily changing prices on the inventory held by them,” Grewal noted. He also said that in the representation to the ministry, FAIPT has pointed out that nearly 50 per cent of the entire dealership network sells 30 kilolitres per month, on an average. “One tank lorry of 18 kl lasts most of such small dealers (for) 7 to 10 days. Any such decision shall wipe out his entire working capital if the prices were to go down frequently,” the statement said.
“…there are dealerships where a tank lorry takes 2-3 days to reach the retail outlet. In such cases, there is a strong possibility that by the time the tank lorry reaches the retail outlet, its price might have already reduced, leaving the dealer only to cry,” it added.