Govt asked to rescue petroleum dealers from bankruptcy

ISLAMABAD: The Petroleum Dealers Association and All Pakistan CNG Association on Monday urged the government to intervene as petroleum dealers had reached the brink of bankruptcy due to uncertain conditions and the nationwide lockdown.

The government should come forward immediately to rescue this important sector, which is moving the wheels of the economy, a representative of both associations said.

In a statement, Ghiyas Abdullah Paracha said the cost of doing business in increasing, while profit continues to decline which has pushed dealers to the wall.

The government should provide them with some relief in electricity bills and taxes, he said.

Paracha said that oil prices have fallen to an unprecedented level in the international market, which is an opportunity that should be used to introduce a new profit formula for petroleum dealers.

He said the recent oil price reduction by the government had resulted in heavy losses to oil dealers, as lockdown had reduced the sale of fuel, while adoption of safety measures had increased cost of doing business.

Paracha said 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.

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

“Oil dealers are facing unprecedented losses, but they are paying different fixed charges including salaries of employees.”

Paracha was of the view that all other sectors had demanded subsidies but petroleum and CNG sectors are only demanding its right, so the government should resolve their problems.