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      Petrol pump dealers seek financial relief to manage operations during coronavirus lockdown

      Nikhil Puthran

      Nikhil Puthran

      Petrol pump dealers seek financial relief to stay afloat during coronavirus lockdown

      The All India Petroleum Dealers Association (AIPDA) has approached state-run oil marketing companies for financial relief packages to stay operational during the lockdown period. Petrol pump sales across the country have fallen to less than one-tenth, leading to heavy losses in establishment and employee cost.

      The letter from the association highlights that the average national sales is down to 15,000 litres per retailer per month due to the lockdown. The average national throughout is at 1,70,000 litres per retail outlet. Apart from the operational cost, the higher evaporation is also adding to losses. With just a few days of lockdown in March, fuel consumption has dropped to 18 per cent to 16,083 thousand tons from the same period a year ago.

      Fuel pumps are currently operating with lower staff to curtail expenses, however fixed cost relating to electricity, bank charges, staff salary, have not reduced in proportion to the decline in sales.