Petroleum dealers’ associations have raised the issue of a shortage of change at petrol pumps as customers are using Rs 2,000 notes even for small transactions.
Ajay Bansal, President of the All India Petroleum Dealers Association told Moneycontrol, “Almost 70 percent of our transactions are in cash. With people asking for change for the Rs 2,000 notes, it is difficult to arrange for enough to address the need. We have written to the RBI and copied the ministries of petroleum and finance for help.”
This comes after the apex bank on May 19 announced the withdrawal of Rs 2,000 denomination bank notes from circulation.
Also Read: RBI declares to withdraw all Rs 2,000 currency notes: All your queries answered
The All India Petroleum Dealers Association highlighted that the situation has become similar to the 2016 demonetisation drive as customers are rushing to petrol pumps to get rid of notes.
The association said that Rs 2,000 notes only contributed to 10 percent of the total cash sale at petrol pumps, which has now risen to 90 percent. Additionally, digital payments at petrol pumps have gone down to 10 percent of daily sales compared to 40 percent previously.
The association has also requested the RBI to give guidelines to banks for “providing enough small demonization notes especially to petrol pumps in lieu of Rs 2,000 notes so that we can smoothly serve our customers.”
Petrol pump dealers are also worried that with the surge in Rs 2,000 notes, they would get in trouble with tax authorities as happened during 2016.
Also Read: Five reasons why Rs 2,000 note withdrawal can't be compared to 2016 demonetisation
“Of late, since the announcement of the withdrawal of Rs 2,000 notes there has been a spurt in the flow of Rs 2,000 notes creating panic among petroleum dealers of the need to explain to the tax authorities at a later date of the unusual increase in remittance of Rs 2,000 notes,” said local petroleum association, Akhila Karnataka Federation of Petroleum Traders.
Petrol pump dealers said their WhatsApp groups are buzzing with people reporting instances of irate customers fighting and arguing for change.
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