The Consortium of Indian Petroleum Dealers (CIPD) has urged the Centre to inform them in advance about any reduction in the retail selling price (RSP) of fuels. This, the CIPD, said was to prevent any losses to the 85,000-strong fuel outlet network in the country.
In letters addressed to the Centre, the Union Petroleum Minister, and the Oil Ministry, the CIPD said the dealers were channel partners of the three State-run oil marketing companies (OMCs) and sought to be informed in advance about the anticipated reduction in RSP so that they could only maintain the daily requirements.
CIPD president Uday Lodh pointed out that dealer margins had not been revised upwards for over six years, and they had lost huge amounts when the Centre reduced excise duty without any notice in November 2021 and May 2022. “We had sought some kind of compensation for the huge losses faced by dealers but there was no response from the OMCs or the Ministry. We are operating on very meagre margins. In such a scenario, any reduction in RSP will throw many dealers into financial chaos and bankruptcy,” said K. Suresh Kumar, general secretary, CIPD.
In its letter, the CIPD further said that if they were not informed of any decrease in price, they should be compensated for any losses thus incurred. “If the Ministry or the OMCs provide dealers and LPG distributors with price protection, it would help the industry immensely. Whether prices go up or down, would not matter to us,” a dealer said.
