The Hindu Business Line : Interim hike in petrol dealers' commission

New Delhi May 15 Petrol pump dealers have got an interim increase in their commission by the state-owned oil marketing companies (OMCs) on the sale of petrol and diesel.

The increase, which comes into effect from Tuesday night, would mean a commission of Rs 1.02 on sale of every litre of petrol and Rs 0.60 on sale of every litre of diesel.

Prior to this increase, the dealers got a commission of Rs 0.89 on sale of every litre of petrol and Rs 0.53 on sale of every litre of diesel. This comes in the backdrop of a long-standing demand of the Federation of All India Petroleum Traders (FAIPT), which has been seeking a five per cent hike in dealer commission.

Strike threat

The federation has been threatening to go on strike if their demands were not met. The Petroleum Minister, Mr Murli Deora, had urged the dealers to call off their proposed agitation and their decision to close retail outlets.

He had said that the Government would endeavour to take a decision on the federation's demand for increase in commission on petrol and diesel sales after consultation with OMCs. "With effect from tonight, the commission has been raised from Rs 894 per kl on petrol to Rs 1,024 per kl, and Rs 529 per kl on diesel to Rs 600 per kl," FAIPT official said.

Other demands

The Government is also looking into the other demands of the federation. Regarding the issue of raising stock variation ceiling, a study by the Indian Institute of Petroleum has been commissioned to examine the impact of different climatic conditions in India on petrol and diesel stocks. The institute will be submitting its report by mid-July, which will be considered expeditiously for appropriate decision.

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