Oil Ministry raises dealers' commission on petrol and diesel

Oil Ministry raises dealers' commission on petrol and diesel The Oil Ministry has agreed to raise dealers' commission on petrol and diesel but the hikes failed to meet dealers' demand, Federation of All India Petroleum Traders said.

The ministry has reportedly agreed to raise dealers' commission on petrol and diesel by 30 paise and 18 paise per litre respectively, while dealers had demanded a hike of 67 paise on petrol and 42 paise on diesel.

General Secretary Ajay Bansal, of Federation of All India Petroleum Traders, said, "We demanded the government to increase out commission on petrol by 67 paise and diesel by 42 paise because the oil ministry did not factor in fuel evaporation, free services to customers and and running pumps on gensets."

One dealer said the oil ministry was moving very cautiously due to a cabinet reshuffle, which is expected to take place on Sunday.

The ministry is yet to make an official announcement of its decision of increasing dealers' commission. The hikes in the prices of the auto fuels will take effect only after the formal announcement by the ministry.

Following the price hikes, petrol will cost Rs 68.2 per litre and diesel will cost Rs 47.13 a litre in Delhi.

At present, petrol pump dealers are receiving a commission of Rs 1.5 a litre on petrol and Rs 91 paise a litre on diesel.