Oil companies hike fuel pump dealers’ commissions (2024)

FAQs

How much is the commission in diesel India? ›

As a percentage of retail price, the current commission is about 3.9% for petrol and 2.9% for diesel.

Your income will depend on the location and number of service stations you operate, but you can look forward to potential earnings of between PKR 2,500,000 and PKR 3,500,000* per annum from year one (for a single station), with the opportunity for additional earnings if you exceed targets and control your costs.

As a percentage of the retail price, the current commission is about 3.9% for petrol and 2.9% for diesel. Currently, petrol pumps get a commission of around INR 2.90 per litre of petrol and around INR 1.85 per litre in the case of diesel.

Indian Oil Corporation Limited, the biggest oil marketing company in India, gives Rs 2.58 commission to dealers on every litre of petrol they sell, whereas for diesel, the same as Hindustan Petrol Corporation Limited. Bharat Petroleum Corporation Limited awards Rs 2.60 dealer commission 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.

Commission Dealer means any dealer that has limited discretion or ability to set the price of fuel sold to its retail customers or receives commission-based compensation from its fuel supplier.

India Oil Corp (IOC) owns and operates 26,489 petrol stations, of which 7,232 are rural outlets. Hindustan Petroleum Corp Ltd (HPCL) is the second biggest fuel retailer with 14,675 outlets, 3,159 being rural sites.

How much profit do petrol stations make per litre in Pakistan? ›

Let's Talk About Some Factual Stats Related to Petroleum

The Pakistan Petroleum Dealers Association (PPDA) requested that the 2.75% per liter earned by petrol outlets be raised to 6%. If this demand is met, petrol stations will make Rs8. 75 per litre, and diesel stations will earn Rs8. 5 per liter.

The dealers' profit margin on both petrol and diesel has been increased from 7.41 to 7.82 rupees per litre. The OMC's margin was increased from 6.70 to 7.17 rupees. The documents showed that the government also increased the freight margin on both the petrol and diesel.

Q: In India, how much money does a petrol pump owner make? Ans: In India, starting a petrol pump is a high-investment business idea. Still, it is also a very profitable one, With petrol pump owners making around ₹3.5 lakhs monthly profit if they can sell 400000 litres of petrol at a commission rate of 3.0/litre.

Despite getting cheap oil from Russia, high taxes, refining costs, exchange rate, distribution and transportation costs, and government subsidies contribute to high petrol prices in India. And it's not just India that is facing high petrol prices.

Buying petrol in bottle is not illegal in any country, but selling is. Petrol pumps are instructed to not to sell open petrol unless a proven need is established. Considering the highly flammable qualities of petrol, there are chances that criminal minds can abuse the facility.

Who decides fuel prices in India? This is done by OMCs – Bharat Petroleum, Hindustan Petroleum, Indian Oil – which review fuel rates daily, a practice that began in June 2017. The new rates, whether revised or unchanged, are announced at 6am each day.

Excise Duty on Fuel in India

After another reduction in May 2022, the excise duty on diesel and petrol further decreased to Rs. 15.80 and Rs. 19.9 per litre. The central excise duty levies taxes on 20% of the petrol price and 17.6% of the diesel price.

Therefore, the diesel subsidy reforms initiated in 2012 and the diesel pricing policy followed since 2014 by the government of India was expected to reduce the fiscal deficit and provide for market-based pricing which would enhance the efficiency of diesel use in the economy and therefore reduce inflation and increase ...