Mumbai: Petroleum dealers have pressed for a substantial hike in their commission and asked the oil marketing companies (OMCs) to periodically revise commission rates in view of deregulation of fuel prices. (Agencies)
"We want the dealer commission to be fixed according to the cost of business," Confederation of Indian Petroleum Dealers (CIPD) general secretary Ravi Shinde said after a meeting with the OMCs.
Shinde, however, said the formula for the quantum of increase is being worked out and would soon be submitted to the oil marketing firms. He hinted that the increase sought would be substantial.
The confederation claims representation in 17 states. The meeting was attended by representatives from 12 states, he claimed and said all three oil PSUs, IOC, BPCL and HPCL, were present to discuss the demands of the dealers.
Shinde said CIPD has asked OMCs to undertake a periodic review of the commission in view of the regular changes in the retail prices of petrol and diesel.
"After deregulation, petrol prices are being revised at frequent intervals unlike in the past when revision would be undertaken once in two months. So, we want the oil companies to review the commission at least every six months," he added.
However, he did not explain how the cost of business has gone up for dealers following the rise in fuel cost.
Currently, a retailer gets Rs 1.78 a litre in commission on petrol and Rs 1.07 per litre on diesel. The last dealer commission revision was effected in October 2012.
Mumbai: Petroleum dealers have pressed for a substantial hike in their commission and asked the oil marketing companies (OMCs) to periodically revise commission rates in view of deregulation of fuel prices.