Petroleum dealers fear bankruptcy, seek help

ISLAMABAD: Leader of the Petroleum Dealers Association and All Pakistan CNG Association, Ghiyas Abdullah Paracha said on Monday that petroleum dealers have reached the brink of bankruptcy due to uncertain conditions and nationwide lockdown.
The government should come forward immediately to rescue this important sector which is moving the wheels of the economy, he said.
In a statement issued here, Paracha said that the cost of doing business in increasing while profit continues to decline which has pushed dealers to the wall; therefore, the government should provide them with some relief in electricity bills and taxes.
He said that oil prices have fallen to unprecedented level in the international market which is an opportunity that should be used to introduce a new profit formula for the petroleum dealers.
He said that recent oil price reduction by the government resulted in heavy losses to the oil dealers, as lockdown has reduced the sale of fuel while adoption of safety measures has increased cost of doing business.
Paracha said that 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 that cost of land and rent has increased a lot making the petroleum business almost unfeasible which can be countered with allowing commercial activities at filling stations, reducing distance between fuel filling machines and new profit regime under new rules and regulations.
The oil dealers are facing unprecedented losses but they are paying different fixed charges while the dealers have not fired employees which has added to the financial burden that must be noticed, he said, adding that all the sectors demand subsidies but petroleum and CNG sector only demand its right, therefore the government should resolve their problems. — TLTP

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