The Hindu : Andhra Pradesh News : Petrol dealers’ plea to State

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Friday, Jul 25, 2008
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Andhra Pradesh

Andhra Pradesh

Petrol dealers’ plea to State

Staff Reporter

Kakinada: The East Godavari District Petroleum Dealers’ Association has requested the State Government to prevent the public sector oil companies from forcing them to sell branded products which results in an unauthorized increase in the prices of petrol and diesel by Rs 4 and Rs 2.25 respectively. The oil companies were also imposing quotas on the basis of quarterly sales made bydealers whereasdemand for petroleum products has been growing at 8 per cent every year. As a consequence, some dealers were running out of stocks.

‘Wrong impression’

Addressing a press conference here on Thursday, association president Ganni Krishna said the belief that petroleum dealers were forcing consumers to buy branded products for more profits was wrong. In fact, the dealers were under pressure from the oil companies to do so. The benefit that accrued to dealers on selling branded products was meagre whereas the consumers paid more for the products not desired by them.

Mr. Krishna said it had become mandatory for the dealers to take deliveries of at least 1/4th of their indents in the form of branded products or have the supply of ordinary fuel curtailed for not obliging the oil companies. This was creating artificial scarcity of the unbranded / ordinary products which are relatively cheaper. Vehicle manufacturers were advising against usage of branded petrol and diesel but the consumers had no alternative except to be victimized by monopolistic trade practices ofoil companies.Civil Supplies Department was asked to check this trend but to no avail.

Association secretary J Nookaraju and treasurer S.V Bhaskar were present.

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