Shaken by Nayara Energy’s decision to cut diesel supply by 50%, dealer association representatives from 11 states will arrive in Mumbai on Tuesday to meet the company’s management.

On Monday, ET reported that Nayara Energy, owned by Rosneft, had asked its dealers to ration the sale of diesel to reduce losses per liter of fuel.

The dealers, in a letter to management, demanded a cancellation of the supply cut and allowed them to sell fuel at the price of PSU, among other things.

“The unilateral and arbitrary decisions/options of Nayara Energy Ltd will not only kill the business/investment of dealers but also the value of the Nayara brand,” the All India Nayara Dealer Welfare Association said in a letter to the CEO of Nayara.

Dealers are calling for a commission review as inventory costs and operating expenses have increased more than 35% since the last review in 2017.

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They require Nayara to provide several options to choose from if they need to reduce product retail.

In addition, dealers are allowed to close the business and de-lease the retail outlet and repay the investment on the depreciated value as defined in the Nayara franchise.

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