Fuel Sector Expects Improvement in Dealer Shares

Fuel Sector Expects Improvement in Dealer Shares
Fuel Sector Expects Improvement in Dealer Shares

Bursa Chamber of Commerce and Industry (BTSO) member fuel sector representatives said that they went through a troubled period due to the melting profit margins despite the increasing costs during the pandemic period. Firms from Bursa drew attention to the need to increase their dealer shares to a level that can meet the increasing costs.

BTSO 34th Professional Committee Extended Sectoral Analysis Meeting was held at BTSO Service Building. BTSO Chairman of the Board İbrahim Burkay, Chairman of the Assembly Ali Uğur, BTSO Board Member İbrahim Gülmez, Orhangazi TSO Chairman Erol Hatırlı, Energy Council President Erol Dağlıoğlu, Assembly Member İlhan Parseker and sector representatives attended the meeting, where the problems and suggestions of the sector waiting to be solved were expressed. The main agenda of the meeting was the shares of the dealers in the fuel sector.


BTSO Chairman of the Board İbrahim Burkay noted that they have carried out important works in order for more than 50 thousand BTSO members to overcome the pandemic process with the least damage and to continue their activities without interruption. Stating that they follow all the demands coming from the energy and fuel sector, President Burkay reminded that the promotion costs that cause the victimization of the fuel dealers of the distribution companies have been resolved with the initiatives of BTSO. Stating that as the Chamber, they also ensured that the fuel stations could continue their activities at the Crisis Desk established within the Governorate during the period when the curfew was implemented, President Burkay said, “However, we have started our initiatives before the Ministry on the supply of drivers and working hours of the vehicles in the transportation of dangerous and chemical substances. In addition, we shared with our Ministry and Energy Market Regulatory Authority the review of the amount and conditions of guarantees requested from our companies operating in the sector, according to the license type. We continue our efforts to meet other demands from our sector representatives, from increasing the profit margins of our fuel dealers to audit procedures. We will also bring these issues to the agenda of our TOBB Turkey Petroleum and Petroleum Products Industry Council.”


Pointing out that there are important developments in the energy sector around the world, BTSO Chairman of the Board Burkay said, “The gas restriction and planned power cuts, which started to be implemented due to the malfunction in Iran's natural gas transmission line, adversely affect the production centers of our country, especially Bursa. On this subject, we held a meeting that lasted approximately 3 hours with our Minister of Industry and Technology and Minister of Energy and Natural Resources yesterday. I believe that the energy flow will return to its normal course as soon as possible and the production will continue uninterrupted with the diplomacy traffic carried out and the studies carried out. In addition, we expect investments that will support sustainable growth within the scope of our country's energy policies to be made immediately.” said.


BTSO Assembly President Ali Uğur said that since the first day of the pandemic, BTSO conveyed all the demands from the sectors to the relevant institutions, together with solution suggestions, thanks to the strong communication network established by BTSO. Stating that although recovery has started in many sectors during the exit from the pandemic, Uğur stated that there are some problems that await solutions in businesses, and said, “I believe that we can overcome the problems encountered in the energy and fuel sector with the guidance of common mind. As BTSO, we will continue to stand by our members and work to be the voice of all our members.” used the phrases.


BTSO Energy Council President and Assembly Member Erol Dağlıoğlu said that energy is one of the sectors most affected by the pandemic that has been going on for the last two years. Dağlıoğlu stated that there were rapid tides in this process in energy commodity prices, “Economies were closed at the beginning of the epidemic, and energy prices decreased when energy demand decreased. However, with the increase in production after the pandemic, we encountered a supply that could not keep up with the demand. During this period, there was a rapid increase in energy prices. Together with the volatility in exchange rates, we are going through a period that we cannot control and cannot keep stock costs. Especially in the fuel sector, there is a significant decrease in profitability rates compared to the past.” he said.


BTSO Assembly Member İlhan Parseker said that fuel dealers are going through a very difficult and troublesome process due to the increasing costs but the profit margins are melting day by day. Noting that the labor costs of the stations increased by 50 percent, transportation costs by 100 percent, electricity costs by 130 percent and other operating expenses by the beginning of the year, above the inflation rate, Parseker said, “Despite this, the current dealer margin increased by only 7 cents compared to January of the previous year and became 48 cents. The ratio of labor cost to gross margin reached 365 percent at 52 fuel stations operating in Bursa. Our dealers are experiencing a significant lack of capital due to increased fuel prices and transportation costs, and some dealers cannot supply their stations. Unless an urgent regulation is made regarding the dealer margins, this situation will worsen and the activities of the stations serving 7 hours a day, 24 days a week may be interrupted. At this point, we expect the dealer's shares to be improved by raising them to a level that can meet the increasing costs, and a new regulation that will ensure that the shares increase at least at the rate of inflation for the following periods." said.

Orhangazi TSO President Erol Hatırlı noted that their support will continue in order to solve the problems experienced in the fuel sector.

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