Here's why you may have to shell out more for petrol, diesel

New Delhi:  State-owned fuel retailers have hiked commissions paid to fuel pump dealers by up to 43 per cent for petrol and by up to 59 per cent for diesel.

Announcing the decision, IOC Chairman Sanjiv Singh said commission to petrol pump dealers was previously paid as fixed amount per litre and was uniform for all operators irrespective of their size.

But now keeping in mind the hardships of petrol pumps selling less than the national average of 170 kilolitre of fuel per month, a graded formula has been decided, he said.

This has been done keeping in mind the fact that wages for employees and other utility costs like electricity are same for all pumps irrespective of their sales, he added.

"The dealers' margin for petrol and diesel has been revised. It is approximately 9 per cent to 43 per cent in petrol and 11 per cent to 59 per cent in diesel," he said.

Low volume dealers shall get maximum increase in commission in terms of percentage and paisa per litre.

Petrol pumps at 'A' sites or those in big cities will get 85.67 paise per litre on petrol and 78 paise for diesel for those selling 25 kl per month.

For those with up to 170 kl sale, the commission would be 57.05 paise per litre for petrol and 46.5 paise a litre for diesel.

Outlets with sale up to 600 kl would get 57.10 paise on petrol and 42.3 paise on diesel and those with sale of 1,200 kl would get 45.26 paise per litre on petrol and 33.5 paise on diesel.

For 'B' sites or pumps in smaller locations like rural areas, the commission would be 109 paise a litre for petrol and 95.7 paise per litre for diesel for outlets with sale of25 kl a month.

The commission would be 78 paise for petrol for pumps doing sale between 25 kl and 170 kl as also 170 kl to 600 kl.

The commission on diesel would be 64 paise for pumps doing sale up to 170 kl and 60 pasie for those doing 600 kl sale per month. The commission for pumps doing sale of 1200 kl would be 66 paise for petrol and 51 paise for diesel.

Singh said the dealers' margin is normally revised at periodic intervals in order to account for increase/decrease in operating costs such as wages and electricity, cost of working capital and return on investment.

"As a major part of the current revision, Central Minimum Wages have been introduced for employees working at the petrol pumps, which are about 50 per cent higher, in lieu of State Minimum Wages.

The oil industry has 9 lakh customer attendants working at petrol pumps, who will be benefited by this," he said.