The Consortium of Indian Petroleum
Dealers (CIPD), representing the fuel retailers in the country on Sunday demanded that a stimulus financial package be released by three state-run oil marketing companies-- IndianOil, BPCL and HPCL-- to sustain its business activities.
CIPD President M Narayana Prasad said the safety measures promulgated by the central and state governments to prevent the spread of coronavirus has left liquidity crunch at retail outlet dealerships due to lockdown.
With costs and expenditures to run retail outlets remaining constant, there is a daily fund shortfall of 90 per cent to meet the expenses that accrue including employee salaries, evaporation losses, electricity charges, water charges among others, he said.
"..it needs to be reimbursed in the absence of daily dealer margin collection as a consequence of curtailed retail sales," he said in a letter sent to three oil marketing companies.
The "stimulus financial package" should be worked out based on the sales in December 2019, January and February 2020 since the lockdown has virtually left the retail outlets without sustainability to continue business activities.
Disclaimer: No Business Standard Journalist was involved in creation of this content
