COVID-19 lockdown: Gujarat-based petroleum dealers incur Rs 400-crore losses, claims FGPDA

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Published: July 29, 2020 3:45 AM

He says that after the un-lockdown process, sales of petrol and diesel again started increasing from mid-June and currently it has augmented to over 80% of average monthly sales.

At present Gujarat based dealers are getting Rs 3 and Rs 2 per litre on the sale of petrol and diesel respectively.At present Gujarat based dealers are getting Rs 3 and Rs 2 per litre on the sale of petrol and diesel respectively.

Due to Covid-19 led nationwide lockdown imposed in the last week of March this year, Gujarat based petroleum dealers have incurred loss of nearly Rs 400 crore, claimed Federation of Gujarat Petroleum Dealers’ Association (FGPDA).

“In the normal time, average monthly sell of petrol and diesel in Gujarat remains around 23 crore litre and 55 crore litre, respectively. However sell of these two important petroleum products were plummeted by almost 85 per cent in the month of April, May and half June due to nationwide lockdown,” said Arvind Thakker, president of FGPDA.

Thakker further said that there are over 4000 petrol pumps across Gujarat and due to hardly 15% of average sell, owners of these petrol pumps were not able to earn enough to maintain their business and went on to incur huge loss of almost Rs 400 crore during the period.

He says that after the un-lockdown process, sales of petrol and diesel again started increasing from mid-June and currently it has augmented to over 80% of average monthly sales.

In order to compensate petroleum dealers in Gujarat, FGPDA has also made a representation before Union Ministry of Petroleum and demanded 25 per cent hike in their commission. According to Thakker, if the ministry would increase commission, the dealers would be able to recover their losses in next five to six months.

FGPDA in its representation drawn attention that while calculating dealer margin certain cost incurred by dealers were consider while arriving at national average of volume of 170 kl a month for an outlet to remain viable.

“This is based on Apurva Chandra Committee (ACC) report when the numbers of retail outlets were 45104 in 2011. But by the end of fiscal 2018-19 retail outlet increased to 64625 which resulted in monthly sell to 155 kl a month. Moreover, currently the global economy is crumbling under the effect of covid-19. As a result of it average sale may stabilise at 100 to 120 kl a month. Hence, it necessitates re-working of various parameters affecting viability of retail outlet operation,” said FGPDA adding that the dealer commission envisaged in ACC report doesn’t cover the elements including diesel generator expenses, annual maintenance of generators, computer hardware and software expenditure and staff welfare.

At present Gujarat based dealers are getting Rs 3 and Rs 2 per litre on the sale of petrol and diesel respectively. As per FGPDA demand, the Government of India should give extra commission of 75 paisa per litre on petrol and 50 paisa per litre on diesel.

FGPDA office bearers have also met Union Minister of Petroleum Dharmendra Pradhan for the purpose and according to them the minister is positive over their demand.

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