PUIS: The minimum price increase should not be reflected to the dealers before our profit margin is increased to 15 percent.
Petroleum Works Patrons Union (PÜİS) conveyed to the Minister of Labor and Social Security Vedat Alim that the increase in the base price should not be reflected on the fuel dealers and that the difference to be created should not be supported by the state before the profit margin is increased to at least 15 percent.
The same letter was also sent to Akansel Koç, Secretary General of the Turkish Confederation of Boss Unions (TİSK), who is a member of the Base Price Determination Board.
The request letter of PUIS is as follows:
“As it is known, there have been various discussions in the public about the minimum price hike in recent days.
It is not possible for the fuel dealers, which employ 150 thousand people, to afford a new increase in the minimum price with their current profit margin.
Because the profit margin of the fuel dealers is not a percentage, but a fixed number. The profit they make from each liter of fuel they sell does not change, even if the fuel prices fall or increase due to this. Moreover, fuel prices are not determined by the dealers.
As of today, the percentage equivalent of the integrated profit margin determined for the distributor and dealer is 5.8% gross. When this integrated profit margin is shared as 50 percent and 50 percent in the middle of the distributor and the dealer in the form determined by the legislation, the dealers’ gross profit margin today is 2.9%.
With a gross profit margin of 2.9%, the fuel dealers have to go for a capital increase due to the power requirement, the salary of the workers, the responsible manager, the dangerous issue security consultant, the salary of the occupational safety expert, the committee burden of the fuel that consumers buy with their credit card, or the exorbitant fuel prices. Will he pay the interest, real estate tax, advertisement and advertisement tax on the loans they have taken because they are staying?
Will it cover operating costs or shipping costs? Will the Ministry of Industry and Technology, the Ministry of Environment and Urbanization, the Ministry of Treasury and Finance fulfill the obligations imposed by the legislation of TSE and EMRA, or will it fulfill the obligation of letter of guarantee?
It is not possible for dealers to bear such heavy costs with such a small profit margin.
For this reason, considering the high increases in our costs and the additional costs on the dealers, the increase to be made in the minimum price without increasing our profit margin to at least 15 percent should not be reflected on the fuel dealers, and the difference should be supported by the state.
Otherwise, 13 thousand fuel dealers, who are trying to survive under very difficult conditions, will perish and hundreds of thousands of people working at the stations will be unemployed.
We present it to your information due to its situation.”