Petrol pumps not to get higher margins (2024)

NEW DELHI : Even as petrol pump dealers seek a revision of dealer margins amid high fuel prices, state-run oil marketing companies (OMC) are unlikely to revise the commission in the near future.

Senior officials said that as the matter is sub-judice, OMCs are unlikely to revise the commissions now. Also, dealers have not passed on the benefit from the previous increase in commissions to employees as per the Marketing Discipline Guidelines amended in 2017, they said.

Dealer margins were last revised around 55% in 2017.

Petrol pump associations last month approached the Supreme Court after the Delhi high court ruled in favour of OMCs. Petrol pump dealers had initially moved the high court against the OMC over the revised guidelines, according to which hefty penalties would be levied on dealers in case their employees are not paid higher than the minimum wages, applicable under central minimum wages or statutory minimum wages, as notified by the states along with benefits such as provident fund, bonus and gratuity. An OMC executive said as the matter is sub-judice, it would not be right on the part of the companies to go for a revision now.

Queries sent to union ministry of petroleum and natural gas, Hindustan Petroleum Corporation Ltd, Indian Oil and Bharat Petroleum Corporation Ltd remained unanswered at press time.

Ajay Bansal, President of the All India Petroleum Dealers Association said petrol pumps are bound to pay minimum wages mandated by the state government. Petrol pumps get a commission of around ₹2.90 per litre of petrol and around ₹1.85 per litre of diesel.

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