‘Oil marketing firms asked to hike dealer commissions on petrol’

Our Bureau Updated - March 12, 2018 at 02:10 PM.

The Petroleum Ministry has asked public sector oil marketing companies to revise dealer commissions for petrol immediately, according to the Federation of All India Petroleum Traders. . But, the increase in commissions will not result in a hike for consumers, the dealers’ body said on Saturday.

“Commission for petrol needs to be revised from Rs 1.49 a litre to Rs 2.16 for every litre . Since petrol is a de-regulated product, OMCs can revise the commission. Oil Ministry has issued a letter to them in this regard on September 20,” Ajay Bansal, General Secretary of the Federation said.

“Crude oil prices have gone down and the dollar is also stable. We have told the companies that if they want to reduce retail price of petrol, they should first adjust the dealers’ commission. This would prevent any rise in price for consumers,” Bansal said.

The dealers have also asked for revision of commission on diesel from Rs 0.91 a litre to Rs 1.32 .

In respect of revision of dealers’ commission on diesel, the Ministry has asked oil marketing companies to submit a proposal within ten days, said Bansal.

He said operating costs of petrol pumps, such as for wages and electricity bills, have gone up drastically, which called for an increase in their commission.

The Federation also said petrol pumps will not be shut on October 1 and 2. “This is false news. Pumps will operate normally and dealers shall make purchases on October 1 according to their requirement keeping in view that October 2 is a public holiday,” said Bansal.

> siddhartha.s@thehindu.co.in

Published on September 29, 2012 16:54