Opening of new outlets put to halt Fuel sale hits rock bottom
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By Our Staff Reporter
IMPHAL, Oct 20: Consequent upon the sharp decline in the volume of oil sale, oil companies have stalled all processes of opening new outlets in Manipur.
Retail outlets opened in Manipur belong to IOCL, HPCL, BPCL and Nayara Energy.
The State’s oil market saw a steady downturn since around 2019 and it suffered a sharp decline from 2022. This resulted in a big loss to oil companies.
Retail outlets are the ones which are worst affected by the shrinking oil market.
Corresponding to a sudden fall in the State’s development activities since around 2019, the sales volume of retail outlets (petrol pumps) declined substantially.
Amid this economic downturn, the Covid-19 pandemic hit the State too.
During the pandemic, the retail outlets suffered immensely as movement of people was restricted.
Soon after Manipur and the whole world emerged from the Covid-19 pandemic, a violent conflict erupted on May 3, 2023 and the conflict has not been resolved till date.
As a result, the State’s oil market shrank further and retail outlets are barely surviving. Many of them (ROs) are even thinking of shutting the business altogether, sources said.
ROs which took loans from banks and invested in the oil business are unable to repay the loans from the profit earned from their oil business. As such, many of them are paying back the loans from their business capitals, said the sources.
People who bought oil tankers and invested in retail outlets with the hope of earning some profit are incurring heavy losses.
Many retail outlets are now struggling hard to pay monthly salaries/wages of their staff and meet daily expenditures for electricity, water etc.
Taking serious note of the situation, oil companies have stopped issuing fresh notices for opening new retail outlets in the State.
Oil companies issue fresh notices every year for opening new retail outlets across India through NIT (Notice Inviting Tender) but issuance of such notices has been stopped for Manipur, said the sources.
No notices were issued for opening new retail outlets in Manipur in the fiscal years 2022-23, 2023-24 and 2024-25, according to the sources.
Even though retail outlets located along Imphal-Dimapur highway are said to be a little better, retail outlets located along Imphal- Pallel road, Kakching Lam-khai-Sugnu road, Keisham- pat-Kwakta road, Moirang Lamkhai to Wangoo road, Wahengbam Leikai to New Keithelmanbi road, Sawom-bung-Sagolmang road and Uripok-Kangchup road have fallen into a very bad shape with their business making no profits or incurring losses, the sources added.
IMPHAL, Oct 20: Consequent upon the sharp decline in the volume of oil sale, oil companies have stalled all processes of opening new outlets in Manipur.
Retail outlets opened in Manipur belong to IOCL, HPCL, BPCL and Nayara Energy.
The State’s oil market saw a steady downturn since around 2019 and it suffered a sharp decline from 2022. This resulted in a big loss to oil companies.
Retail outlets are the ones which are worst affected by the shrinking oil market.
Corresponding to a sudden fall in the State’s development activities since around 2019, the sales volume of retail outlets (petrol pumps) declined substantially.
Amid this economic downturn, the Covid-19 pandemic hit the State too.
During the pandemic, the retail outlets suffered immensely as movement of people was restricted.
Soon after Manipur and the whole world emerged from the Covid-19 pandemic, a violent conflict erupted on May 3, 2023 and the conflict has not been resolved till date.
As a result, the State’s oil market shrank further and retail outlets are barely surviving. Many of them (ROs) are even thinking of shutting the business altogether, sources said.
ROs which took loans from banks and invested in the oil business are unable to repay the loans from the profit earned from their oil business. As such, many of them are paying back the loans from their business capitals, said the sources.
People who bought oil tankers and invested in retail outlets with the hope of earning some profit are incurring heavy losses.
Many retail outlets are now struggling hard to pay monthly salaries/wages of their staff and meet daily expenditures for electricity, water etc.
Taking serious note of the situation, oil companies have stopped issuing fresh notices for opening new retail outlets in the State.
Oil companies issue fresh notices every year for opening new retail outlets across India through NIT (Notice Inviting Tender) but issuance of such notices has been stopped for Manipur, said the sources.
No notices were issued for opening new retail outlets in Manipur in the fiscal years 2022-23, 2023-24 and 2024-25, according to the sources.
Even though retail outlets located along Imphal-Dimapur highway are said to be a little better, retail outlets located along Imphal- Pallel road, Kakching Lam-khai-Sugnu road, Keisham- pat-Kwakta road, Moirang Lamkhai to Wangoo road, Wahengbam Leikai to New Keithelmanbi road, Sawom-bung-Sagolmang road and Uripok-Kangchup road have fallen into a very bad shape with their business making no profits or incurring losses, the sources added.