Indian fuel pump retailers reduced their stock inventory. Now retail fuel pumps across the country are operating with three days of stock instead of five days of inventory which was routine for the last few years. These three-day inventory routines were opted across the country amid the expectation of price cuts in petrol and diesel ahead of the general elections.
Indian fuel dealers are now restocking their fuel pumps with three days of inventory. This trend is now adopted by fuel dealers in India amid the expectation of price cuts from oil marketing companies (OMC). This may lead to financial loss for the stocked fuel if the price revision comes into effect.
Suneet Bagai, former president of the Rajasthan Petroleum Dealers Association said, “If on an average there is a ₹5 cut (on petrol and diesel) dealers in rural India would lose about ₹1-1.5 lakh, and those in tier-III cities would lose about ₹5-7 lakh. In the case of tier-II cities, the losses may be in the range of ₹10-15 lakh per pump, and for dealers in metro cities it may well be around ₹25-30 lakh.”
“There is a public demand for a cut in fuel prices as it was believed that they would be reduced if prices slip below $80 per barrel. It remained under that level for a considerable time,” Bagai said.
Recently, Rajasthan Fuel Pump retailers were on strike for 48 hours and the strike gained attention among people. The strike happened in demand of getting a reduction in fuel prices by the government.
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