Over 4,590 petroleum dealers in Tamil Nadu and Puducherry will not purchase fuel from oil companies on January 31 to register their protest against frequent price reductions that they claim have caused inventory losses.
“The price decrease happens on the 15{+t}{+h}and 30{+t}{+h}of most months, and dealers end up purchasing fuel at a higher price and selling at lower rates. In the past five months, each dealer has had to face a loss of Rs. 3 lakh to Rs. 5 lakh,” said K.P. Murali, president, Tamil Nadu Petroleum Dealers Association, at a press meet in the city on Tuesday.
Association treasurer L. Ramachandran said petrol was decontrolled in October 2013 and diesel in October 2014.
Dealers say they have been purchasing fuel at a higher price and selling at lower rates, resulting in losses for the past five months