Why Buying Oil for Cheap, Selling at High Cost? Dealer Asks Govt

Petrol-Diesel price: ‘How justified is it to burden the consumers?” A petroleum dealer questions the government.

A petrol pump.

(Photo: PTI)

Video Editor: Puneet Bhatia & Vivek Gupta
Video Producer: Hera Khan

While diesel prices touched new high, petrol also saw a price hike. This has left oil dealers and common people in distress.

Hemant Sirohi, a petroleum dealer, said:

“From 15 March 2020 to 5 June 2020, there was no change in the prices of petrol and diesel even when crude oil prices had dropped to $19 per barrel.”

Sirohi alleged, “Oil is sold as cheap as Rs 17-20 to industrialists but not to farmers and transporters... This oil is then used for adulteration.”

He also questioned how dealers who are already in distress by drop in sales due to COVID-19 will invest more money.

“Oil is bought, it’s refined in India where the refining cost is cheaper but the finished product rate is based on the international market.”

Hemant Sirohi, Petroleum dealer

He expressed distress by mentioning that oil companies are making profits and government is taking revenue by increasing excise duty but it’s only consumers and dealers who are suffering.

Bal Malkit Singh, who is the Chairman of All India Motor Transport Congress, also expressed concern over suffering businesses.

Opposing the continuous oil price hike for 19 days, Singh requested the government to roll back the hike.

“There will be inflation, unemployment and because of the fall in demand we will have to shut down our businesses... We request the govt to reduce oil prices”

Bal Malkit Singh, Chairman, All India Motor Transport Congress