LUDHIANA: Petroleum dealers in Ludhiana are on tenterhook for not getting any relief from the rising petrol and diesel prices, as they claim that high rates are affecting their business. According to him, if the government and petroleum companies do not take necessary steps, a large number of petrol pumps will go out of business and will be permanently closed.
Petroleum Dealers Association Ludhiana (PTDA) on Wednesday organized an emergency meeting to discuss about the problems of its members.
Association chairman Ashok Sachdeva said, “There has been a record increase in the prices of petrol and diesel and it has become very difficult to do business. Our margins are stable and with increase in RSP of Petrol-Diesel, our margins have not increased but our investments have increased. So, our margins have come down as a percentage. If we go by the price split of both the products for March, our dealer margin average on petrol was Rs 3.40 per liter and on diesel was Rs 2.20 per liter, which is a very small part of pricing both in state and state taxes . The center forms a major part”
Sachdeva also said, “Though the central taxes are the same for all states, the Center has increased the excise duty on petrol from Rs 9.48 per liter to Rs 32.90 and on diesel from Rs 3.56 per liter to Rs 31.80. few years.However, state taxes differ, and it is troubling that the Punjab government has chosen to increase VAT and other taxes/cess on petrol and diesel, making both the products costlier than neighboring states Neighboring states such as Himachal Pradesh and Haryana have actually reduced their VAT rates and are considering further further downward revision, while Punjab has increased taxes from March 2020, the latest being the infrastructure development tax. “There has been a huge difference in the fuel rates between both the states and the customers, especially those who have trucks and buses, prefer to get their fuel requirements met from the surrounding states, causing us losses.”
According to PTDA President Ranjit Singh Gandhi, “Petrol pumps have been losing capital and revenue for a long time and the onset of the Covid-19 pandemic in March 2020 led to payment defaults, depressed sales and added safety and hygiene expenses to dealers. Dealers have had to invest their lifetime savings to keep the business running and may be forced to shut down many petrol pumps in case of further trouble. If the long payable dealer margin, which has not been revised since 2017, is revised, it will help us stay in business. Instead of helping, Oil Marketing Companies (OMCs) withdrew subsidies and general financial assistance to help dealers meet the cost of uniform and equipment maintenance.
Gandhi also said, “While other businesses have received some kind of financial help, petrol pumps, despite functioning during the lockdown during the pandemic, have not received any help or financial package from any quarter. It is ironic that three OMCs – Indian Oil Corporation Ltd, Hindustan Petroleum Corporation Ltd and Bharat Petroleum Corporation Ltd – have actually posted record profits, while dealers have lost capital and income since the start of the Covid-19 pandemic.
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