Petroleum dealers nearing bankruptcy
KARACHI: Chairman Petroleum Dealers Association and All Pakistan CNG Association Ghiyas Abdullah Paracha on Monday said the petroleum dealers had 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. Paracha said in a statement 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. 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.