Dealers may not buy products from oil firms for a day

Demanding a rollback of petrol price rise, Tamil Petroleum Dealers Association on Wednesday announced that it proposes to stop purchase of the products from the oil companies for a day as a sign of protest.

Apart from the users, the frequent increase in the petrol prices, according to M. Kannan, president of the Association, has a bearing on the dealers as their investment increases. The dealer commission, however, remains at the same level as it is fixed and not a percentage of the cost of products.

The general body of the Association would shortly meet to decide on the date of the one-day stop purchase, he told press persons here on Wednesday. Stating that a strike would inconvenience the common man, he said after the dealer commission was increased on July 1, this year, the petrol prices had been revised twice.

As a result of the cost of the fuel went up by Rs.5 a litre necessitating more investment and eroded the commission to a considerable extent. The commission on petrol and diesel now is Rs.1,499 per KL and Rs..912 per KL on invoice price.

The oil companies, Mr.Kannan said, cited the additional burden on common man whenever the petroleum dealers demanded more commission.

The Association, he added, was also against the companies to cut down their expenditure and not establish new petrol bunks as the per pump thruput had come down from 250 KL to 120 KL. In Tamil Nadu alone, 1400 outlets were added in the last five years. There are about 3,000 petrol bunks in the State and an equal number is proposed to be set up. Instead of new outlets, the oil companies should develop the existing outlets, he said.

The Association also wants the oil companies to make public announcements, as in the case of petrol and diesel, whenever the prices of engine and 2-T oils are revised.