Dealers suspect government’s attempt to privatize oil public sector units

Dealers suspect government’s attempt to privatize oil public sector units
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Petroleum dealers across the country are planning to go on strike because they believe the Union government is responsible for their losses. They feel that the government wants to turn public sector outlets like HP, BP, and IOC into unprofitable businesses and eventually hand them over to private companies.

The Telangana Petroleum Dealers Association expressed their frustration, stating that while the government has increased commission for LPG gas suppliers, they have not received any increase in commission for filling stations in the past seven years. This lack of support from the government is causing financial difficulties for the dealers.

The dealers believe that if the government does not change its approach, it could impact the election outcomes. They claim that the NDA is aiming for 400 plus seats and their support could play a significant role in the elections.

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The petroleum dealership used to be a profitable business, with people vying for the opportunity to own a dealership from PSUs like HP, BP, and IOC. However, recent decisions by the government and oil companies have made it difficult for filling station dealers to make a profit. Maintenance costs and staff salaries have become a burden due to the lack of commission increases.

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The dealers are facing challenges due to unviable rules and regulations imposed by oil companies, such as Market Guidelines that hinder their ability to earn profits. Despite investing significant amounts in setting up each outlet, dealers are struggling to survive in the market.

Some dealers’ associations in other states have approached the Supreme Court regarding the impractical guidelines imposed by oil companies. The dealers allege that the companies are harassing them to implement these guidelines, leading to further financial strain.

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The dealers are seeking support from the Election Commission and the Ministry of Petroleum to address their demands for increased commission. They emphasize that their association has a significant voter base of 1.50 crore voters, which could impact election results if not addressed by the government.

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