Lockdown-hit petroleum dealers demand relief

KARACHI: Petroleum dealers on Monday appealed to the government to save them from going out of business as the lockdown-led restrictions and other uncertainties were pushing them to the brink of bankruptcy.

“The government should come forward immediately to rescue this important sector, which is moving the wheels of the economy,” said Ghiyas Abdullah Paracha, chairman Petroleum Dealers Association and All Pakistan CNG Association, in a statement.

Paracha said the cost of doing business was increasing, while profit margins were continuously on the decline, pinning the dealers against the wall, therefore the government should provide them with some relief in electricity bills and taxes.

He said oil prices had fallen to unprecedented levels in the international market, which was an opportunity that should be used to introduce a new profit formula for the dealers.

The trade associations leader informed that the recent oil price reduction by the government resulted in heavy losses to the dealers, the lockdown had reduced the sale of fuel, while (coronavirus) safety measures had increased the cost of doing business.

“The fuel supply chain has suffered a lot due to recent disruption, compelling dealers to increase storage amid low sales, which is an added problem,” Paracha said.

He said that cost of land and rent had increased a lot, making the petroleum business almost unfeasible, which could be countered by allowing commercial activities at filling stations, reducing distance between filling machines, and new profit regime under new rules and regulations.

“The oil dealers are facing unprecedented losses but are forced to pay different fixed charges, while they have not fired employees, which has added to the financial burden that must be noticed, he said, adding that all the sectors were demanding subsidies but we are only demanding our its right, therefore the government should resolve out problems.