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Petroleum dealers reaches to brink of bankruptcy due to uncertain conditions

Cost of doing business in increasing while profit continue to decline

Muhammad Sudhir Chaudhry Deputy Bureau Chief Lahore

21st Apr, 2020. 12:02 am
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Petrol at pump stations

Petroleum Dealers Association said the petroleum dealers have reached to 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.

Former executive, Ghiyas Paracha said that the cost of doing business in increasing while profit continue 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 the 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 informed that the recent oil price reduction by the government resulted in heavy losses to the oil dealers, the lockdown has reduced the sale of fuel while safety measures has increased cost of doing business.Ghiyas Paracha said that 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 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.

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