Indore: The inflammable petroleum is now burning a hole in the pockets of the people at Rs 106.16 for the Premium, Speed or Xtreme and Rs 103.01 for the Regular. The rise is because of the increase in excise duty and VAT, as well as lockdown due to Covid-19 pandemic.
The Indore Petroleum Dealers Association’s president, Rajendra Singh Vasu, said sales have decreased due to lockdown.Our business runs on volume-based commission because of which our commission got less because consumption of petrol was less during the lockdown. On the other hand, our expenses on maintenance of petrol pump, staff salary and other expenses have remained the same.
“We do not gain even if prices rise because our commission is fixed. For example, if we are getting a commission of Rs 5 for each litre of petrol sold at Rs 100 per litre, there won't be any increase in the commission even if the price rises to Rs 110 per litre," said Vasu.
He also said rates can come down only when the government wants because when crude rates decrease the government increases the excise duty. Similarly, the state has also increased VAT. Crude oil has crossed $70 so prices of diesel and petrol might increase further.
Ajay Thakur, manager at RR Fuel Centre said that because of lockdown people are not coming. Before lockdown, our sale was around 50,000 to 70,000 litres per day but now it has decreased to 2,500 litres to 3,000 litres.
Ashok Shiromani, manager of Maruti Fuels said that as the rates are increasing the rates can touch Rs 110 till the end of this month or in the first week of July. Our business is running at a 50 % loss because expenses are same but earning has decreased.
COST OF MAINTENANCE OF PETROL PUMP AND EARNINGS
On an average maintenance of a petrol pump costs Rs 2.5 to Rs 3 lakh per month and the earnings of petrol pumps havedecreased by 70% as compared to the years before Covid-19.
STAFF AND UNEMPLOYMENT
To handle a normal petrol pump, a staff of 10 to 12 people is needed, and the number increases with the increase in the number of dispensers. Due to Covid-19 crisis, many pumps have decreased the staff.
Rates are pinching the middle-class
“The petrol price has increased a lot. I request the government to please look into this matter and think of the middle-class section of people. It is unaffordable.” -Vishal Garg.
It is good. Let the rates increase
“It is good that rates are increasing. The government is doing great because there are many expenses for which revenue should be generated. An increase in Rs 10 – Rs 20 does not make a difference. We can afford it. The government will run with this money only." -Amarlal.
Association Prez says..
“At present, our business is down by 40%. Our cost of capital is increasing. We appeal to the Central and State government to decrease the price of petrol and diesel.” -Rajendra Singh Vasu, President, Indore Petroleum Dealers Association.
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