Hyderabad: The daily revision of fuel prices has benefited consumers by Rs 3 per litre over the past five days but dealers say they are losing a similar amount.
Dealers have complained to oil marketing companies that their loses are ranging from Rs 1 lakh to Rs 5 lakh from each pump. Dealers will meet on June 28 to discuss their future course of action.
They said they were purchasing fuel at a higher price and selling it cheaper the next day, as the retail prices had come down for five days.
In the same system, dealers can make money in case the prices increase. But they see no chance of that happening in the near future with fall in global oil prices.
Besides, complaints of fuel price not being updated even in automated fuel dispensers are pouring in from the districts.
OMCs refused to increase commission
The daily revision began on June 16 with the price of petrol dropping by Rs 1.82 per litre and diesel Rs 1.69 in the city. On June 17, petrol and diesel were cut by 34 paise and 20 paise, on June 18 by 18 paise and 14 paise, on June 19 by 20 paise and 10 paise and on June 20 by 11 paise and 6 paise respectively.
Normally, each petrol pump purchases 12,000 litres of fuel at a time, at the price on that particular day. Their sale price — which could go up or down — depends on the daily revision.
Only 20 per cent of the pumps sell 6,000 litres per day. The stocks last two days. These pumps suffer a loss for one day in case of price drop.
But 80 per cent of the pumps sell only 2,000 to 3,000 litres per day. These dealers had suffered a bigger loss as their sale of the stock was spread over five days, with the price falling each day.
“Those dealers who purchased petrol on June 15 for higher price remain the worst affected. They are losing with every passing day as the prices have continued to fall,” said Mr Rajiv Amaram, president, Telangana Petroleum Dealers’ Association.
He said if the OMCs refused to increase commission for dealers as promised earlier, most outlets would be in trouble.
“The OMCs had promised to look into the commission issue in July. If they fail to do so, it will sound deathknell for majority of the petrol pumps,” he said.
