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Halting credit facility to petrol dealers will cause chaos: AIPDA

In all, there are 90,000 dealers in the country. Of which there are 4500 in Maharashtra and 550 in Pune.

oil companies stop credit facility petrol dealersIn all, there are 90,000 dealers in the country. Of which there are 4500 in Maharashtra and 550 in Pune. (File photo)

Even as oil companies withdraw the credit facility given to fuel dealers amid the global oil crisis, the All India Petroleum Dealers Association on Saturday warned this could lead to a “chaotic situation” in the country.

“Credit to dealers of petrol, diesel and other petroleum products has been stopped by oil companies with immediate effect in the country. Dealers have been asked to make advanced payments for their products. This will lead to a chaotic situation in the country from Monday. Transportation services, construction activity and development projects will be adversely affected. This will have a cascading effect on different sectors,” said Ali Daruwalla, core committee member of the All India Petrol Dealers Association.

In all, there are 90,000 dealers in the country. Of which there are 4500 in Maharashtra and 550 in Pune.

Daruwalla said, “As per the arrangements, the dealers were allowed to make purchases up to Rs 20-30 lakh. It means they used to get a limit of up to Rs 30 lakh. But now they will not get any limit. They will have to pay cash and carry the products. Our questions is, which dealers keep Rs 30 lakh at home? No one keeps such a big amount at home. How will they make the purchase from Monday? This is really going to throw everything into a disarray.”

Daruwalla said, “The All India Petrol Dealers Association wants to request BPCL, HPCL and Indian Oil to continue with the credit facility as the dealers are not in a position to make purchases on cash basis.”

As for the distribution of commercial LPG, Daruwalla said, “There is no ban… There is some miscommunication and it has been sorted out. Commercial LPG will continue to remain available like in the past.”


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