Sale of fuel dropped 10% more than normal due to COVID-19
The Consortium of Indian Petroleum Dealers have for the second time written to the three major oil companies, seeking a stimulus financial package, saying it is very challenging to operate as fuel sales have dropped more than 10 per cent from normal due to the COVID-19 outbreak. CIPD President M Narayana Prasad said the Oil Marketing Companies HPCL, IOCL, BPCL had neglected to revise the dealer margins since August 2017 which subsequently led to retail outlet operations becoming 'exceptionally challenging'.
CIPD had already written a similar letter to the OMCs on April 11.
While salaries and operational costs for the quarter ending March 2020 amid the difficulties emerged due to the coronavirus outbreak, "the sales of motor spirit and high speed diesel have dipped no more than an average of 10 per cent of normal sale," Prasad said.
The financial challenges faced by retail outlets in absence of sales volume have rendered operations 'unviable' since dealer margins were based on volumetric liter sales, he said.
Noting that the retail outlets have taken up various measures in keeping the surroundings clean and hygiene as part of the measures to contain the spread of COVID-19, he said expenses also need to be 'immediately re compensated'.
A further delay in the release of a stimulus financial package would render future operations to miserably fail and collapse, he said.
"In the absence of liquidity and funds to keep retail outlets operational from May 2020 or until the complete lifting of the lockdown period, daily funds have dried up from the last quarter of March 2020 till date without the much-needed relief forthcoming from oil marketing companies", he said.
In Tamil Nadu, all fuel outlets have been directed to operate between 8 AM and 12 noon due to the lockdown in force.
