PUDUCHERRY: The petroleum dealers in Puducherry have not purchased petroleum products from oil companies on Tuesday, demanding reimbursement of the losses they suffered due to sudden cut in excise duty by the Central government. This is as a part of the nationwide protests by petroleum dealers associatons.
"The reduction of petrol and diesel prices by Rs 8.49 and Rs 6.69 per litre respectively in Puducherry due to the cut in excise duty by Central government have brought reprieve to the consumers, but petroleum dealers find themselves in the lurch with losses. Around 110 dealers who procured the fuel by paying excise duty to oil companies and stored them in their underground tanks and tanker lorries, are now having to sell at reduced rate to consumers, leading to losses. As per the dealership agreement with the oil companies, a minimum stock for three days have to be maintained," Puducherry Petroleum Dealers Association secretary A Murugesan told The New Indian Express.
"However, in all these years, the petroleum dealers have benefited when the petrol and diesel prices got enhanced. The enhancement had been in terms of paisa each time, when the benefit has been marginal, but now the cut in rates is high with Rs 8.49 for petrol (motor spirit) and Rs 6.69 for diesel (high speed diesel), which has affected the trade. The Petroleum Dealers Association has urged the Central government to compensate for the losses suffered by dealers due to sudden reduction in excise duty," he said.