Oil companies should raise dealers’ commission: Petrol pump association

Oil companies should raise dealers’ commission on the sale of petrol and diesel to 5% of retail price as operating costs have risen, All India Petrol Pump Dealers Association (AIPDA) has said.

Dealers’ commission is decided by a five-year-old formula that has fixed as well as variable components.On average, dealers are currently getting a commission of Rs 3.78 per litre of petrol in Delhi. On diesel, it is Rs 2.57 per litre. As a percentage of retail price, the current commission is about 3.9% for petrol and 2.9% for diesel.

The dealers’ commission hasn’t been revised for the past five years even as operating costs and facilities at pumps have increased, AIPDA president Ajay Bansal said.