News Karnataka
Thursday, April 25 2024
Business

Dealers demand stimulus package from oil companies

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Chennai: The Consortium of Indian Petroleum Dealers (CIPD) on Saturday demanded a financial stimulus package from the oil marketing companies (OMCs) as their members are incurring losses due to the Covid-19 induced lockdown.

In a letter to the three OMCs — Indian Oil Corporation, Hindustan Petroleum Corporation and Bharat Petroleum Corporation — the CIPD said that the lockdown has resulted in an economic slump and liquidity crunch for its members.

According to the letter, the margins have gone down drastically during the lockdown as fuel sales have come down to about 10 per cent of the normal daily sales, while costs remain the same, like employees’ salaries, bank interests, evaporation losses and others that need to be reimbursed.

The OMCs should provide a financial stimulus package out of their Corporate Social Responsibility (CSR) to oil dealers, it demanded.

According to CIPD, the stimulus financial package needs be worked out on an average sales basis of December 2019, January and February 2020, since the lockdown on March 25.

The stimulus package should commence from March 2020 and to continue for 120 days after the lifting of the lockdown.

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