Petrol, diesel daily price revision row: In protest against the daily retail price revision of petrol and diesel, the Delhi Petrol Dealers Association has decided to support ‘No Purchase No Sale’ call by Federation of All India Petroleum Traders, reports news agency ANI. The oil marketing companies (OMCs) had last week announced daily revision of fuel prices starting June 16. It said that the price revision will reflect changes in international prices. Despite the OMCs have confidence in getting positive results through the move in terms of managing inventories, the dealers think differently and have asked for the order to be postponed. If the demand is not fulfilled, dealers affiliated with OMCs have threatened to go on an indefinite strike starting June 16. A day after this report surfaced the Delhi Petrol Dealers Association also extended its support to the protest, on Tuesday.
According to an FE Bureau report, the dealers are concerned about losses that they will make after the price change between the time fuel is bought and it is actually delivered at the outlets. They further claimed that the decision will impact those petrol pumps which are not fully automated. On these petrol pumps there will be down time of around an hour every night, as every nozzle point will be required to be reset manually. These outlets will also be needed to take stock of fuel sold and left in the tank before resuming sales, the report said.
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Meanwhile, OMC are sure the move will have positive impact. As per OMC sources, with daily fuel price revision, dealers will be able to manage inventory better as increase or decrease in buying pattern at the end of the fortnight depending on market perception of upcoming price trends in prices can be avoided. It will help in avoiding current fortnightly pricing mechanism that results in sales distortion and pressure on the marketing infrastructure.
Rating agency ICRA has also mentioned benefits of the move. In its report, the agency has said that the daily revision of petrol and diesel will safeguard consumers from sudden quantum change in prices as well as it will reduced the chances of the issue being politicised.