Sale of fuel dropped 10% more than normal due to COVID-19:CIPD

Chennai, Apr 28 (): The Consortium of Indian PetroleumDealers have for the second time written to the three majoroil companies, seeking a stimulus financial package, saying itis very challenging to operate as fuel sales have dropped morethan 10 per cent from normal due to the COVID-19 outbreak.

CIPD President M Narayana Prasad said the Oil MarketingCompanies HPCL, IOCL, BPCL had neglected to revise the dealermargins since August 2017 which subsequently led to retailoutlet operations becoming 'exceptionally challenging'.

CIPD had already written a similar letter to the OMCs onApril 11.

While salaries and operational costs for the quarterending March 2020 amid the difficulties emerged due to thecoronavirus outbreak, "the sales of motor spirit and highspeed diesel have dipped no more than an average of 10 percent of normal sale," Prasad said.

The financial challenges faced by retail outlets inabsence of sales volume have rendered operations 'unviable'since dealer margins were based on volumetric liter sales, hesaid.

Noting that the retail outlets have taken up variousmeasures in keeping the surroundings clean and hygiene as partof the measures to contain the spread of COVID-19, he saidexpenses also need to be 'immediately re compensated'.

A further delay in release of a stimulus financialpackage would render future operations to miserably fail andcollapse, he said.

"In the absence of liquidity and funds to keep retailoutlets operational from May 2020 or until the completelifting of lock-down period, daily funds have dried up fromthe last quarter of March 2020 till date without the muchneeded relief forthcoming from oil marketing companies", hesaid.

In Tamil Nadu, all fuel outlets have been directed tooperate between 8 AM and 12 noon due to the lockdown in force. VIJ APRRAVINDRANATH APRRAVINDRANATH