Petroleum dealers in TN suffer heavy losses due to fuel price cut

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The fall in fuel prices may have brought some relief to motorists but petroleum dealers in the State are a harried lot. The reason being them having filled up underground tanks at old rates before sudden slash of excise duty resulting in their loss of approximately Rs 165 crore, according to Tamil Nadu Petroleum Dealers Association (TNPDA).

KP Murali, president of the TNPDA said the sudden price slash has impacted 5,500 fuel outlets in the State. “On an average, each outlet has lost Rs 3 lakh to Rs 4 lakh,” he added. Dealers usually purchase petrol and diesel by paying full excise and value added tax (VAT).

They sell it through Retail Selling Price (RSP) fixed by public sector undertaking companies and not by dealers. “When excise price was reduced, it was immediately passed on to dealers resulting in a heavy loss,” said Murali.

Petroleum outlet dealers in the State now seek compensation from oil companies as they claim it will have a negative impact on their financials to operate outlets and maintain sales.

Source

Petroleum dealers in TN suffer heavy losses due to fuel price cut

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