Mgmt: Nayara fuel dealers to meet Mgmt today

Upset with Nayara Energy‘s move to reduce diesel supply by 50%, representatives of dealers association from 11 states will be reaching Mumbai on Tuesday to meet the company’s management.

On Monday, ET reported that Rosneft-owned Nayara Energy has asked its dealers to ration the sale of diesel to reduce per litre losses on the fuel.

The dealers in a letter to the management have demanded a roll back of the supply cut as well as allowing them to sell fuel at PSU prices among others.

“One-sided and arbitrary decisions/options by Nayara Energy Ltd will not only kill the business/investment of dealers but the Nayara brand value as well,” All India Nayara Dealer Welfare Association stated in a letter addressed to Nayara’s chief executive.

Dealers are seeking a revision in commission as cost of inventory and operating expenses has increased more than 35% since the last revision in 2017.

They are demanding that Nayara provide multiple options to choose from if they need to reduce the retail sale of products.

Also, dealers be allowed to close the business and de-lease the retail outlet and refund the investment on depreciated value as defined in franchise Nayara.