State-run oil marketing companies (OMCs) are trying out various strategies to increase sales, including extending credit facility for large volume customers and support for working capital for dealers.
At present, companies have been selling only 71% of diesel and 82% of petrol when compared to last year’s sales due to the lockdown. “We are supporting dealers so that they can in-turn extend credit facility to customers. At least 50% of the diesel business is through credit. These are truckers and their business has been hit and they need support. Customers, who used to repay in 10 days, are requesting for more time. Repayments happen in 15-30 days,” a source said.
As far as credit support was concerned, based on their credit worthiness, dealers are provided loans through banks. “If they delay to repay, it is the duty of the OMCs to ensure repayment,” an official said.
Meanwhile, Indian Oil Corporation is planning a scheme for customers who pay by cash. “It is to incentivise this segment, who are mostly truckers. We are offering a cashback scheme. Nearly 25% of volume is decided by such customers,” an IOCL official said.
