Petrol, diesel daily price revision row: Petrol pump dealers on Wednesday withdrew the strike against daily revision of petrol and diesel prices. The decision to revise petrol and diesel prices daily will stay and will start from June 16.
Petrol, diesel daily price revision row: Petrol pump dealers on Wednesday withdrew the strike against daily revision of petrol and diesel prices. The decision to revise petrol and diesel prices daily will stay and will start from June 16, PTI reported quoting Oil Minister Dharmendra Pradhan. The Association had earlier decided to support ‘No Purchase No Sale’ call by Federation of All India Petroleum Traders. Last week, the oil marketing companies (OMCs) announced a daily revision of fuel prices starting June 16. It said that the price revision will reflect changes in international oil prices.
The price revision move, according to the OCMs, can give positive results in terms of managing inventories. However, the dealers front have a contradicting belief and have asked the department to postpone the order. As per a previous FE Bureau report, these dealers are concerned about the losses that they will make after the price change between the time fuel is brought and delivered at the pumps. Dealers have also claimed that the move also hindered the business of those petrol pumps who are not fully automated.
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The dealers also stated that due to the move, there will be down time of around one hour every night at these petrol pumps as every nozzle point will have to be reset manually. These pumps will also be needed to take a stock of fuel sold and left in the tank before resuming sales on a daily basis. However, OMCs are quite sure that the decision will have a healthy impact on the industry and several OMC officials have said that will the recently announced price revision, the 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.