As the national oil marketing companies go ahead with the retail outlet expansion plans, the existing dealers have expressed concern over the possible impact on them.
Telangana Petroleum Dealers Association president Rajiv Amaram says the establishment of so many petrol pumps will affect the existing retail outlet dealers.
Struggle
“The business of the existing outlets would be hampered and may also lead to [their] closure,” he said, pointing out that more than 70% of the existing dealers were struggling to achieve the sales volume set by the companies. The association wanted the companies to roll back the plans for new dealerships, he said. Sources in the oil industry said at least in two other States the existing dealers had approached the court of law seeking a stay on the dealer selection process, with their plea also being upheld in one of the States.
New selection process
Meanwhile, the dealer selection process this time around is different in view of the number of selections that could be done in day. On an industry basis, the three oil companies have decided to limit the number of selections, at each venue where the draw of lots is held, to ten a day.
