Petrol and diesel retail stations in Tamil Nadu and Puducherry will not procure petro products from Oil Marketing firms on January 31, asking them to evolve a mechanism to prevent inventory loss for retailers.
Tamil Nadu Petroleum Dealers Association President KP Murali told reporters here that retailers faced a cumulative financial loss ranging between Rs 3-5 lakh in the past five months due to frequent revision in petrol and diesel prices.
"Whenever price revisions are announced dealers have to sell the remaining inventory purchased at a higher price at the reduced new price," he explained.
While such revisions were being made on the 15h and 30th or 31st of every month, this month the announcement was made on 16th and it caused losses for retailers, he claimed.
He wanted the Oil Marketing Companies and authorities to come up with a mechanism to prevent such "inventory losses" for petrol pump operating retailers.
Murali also said penalties were being levied for "improper" toilet maintenance in fuel stations and this must be withdrawn immediately.
"Seeking solution to inventory losses and withdrawal of penalty for improper toilet maintenance in petrol pump premises, we will not buy from OMCs on January 31," he said.
"There are 4470 retail outlets in Tamil Nadu and 150 in Puducherry," he said and added petrol stations will, however, be open and sale will continue as usual.
As a result, petro-products (petrol and diesel) offtake of 26,000 kilolitres and 2000 kilolitres in Tamil Nadu and Puducherry from OMCs will be affected and it will also mean a cut in tax and excise revenue for the State and Central governments, he said.
