Petrol pumps in 22 states to not buy petrol from OMCs; details here  

Petrol pumps in 22 states have decided to not buy petrol from state-backed oil marketing companies (OMCs) on Tuesday due to no revision in their commissions despite the hike in petrol and diesel prices, according to the All-India Petroleum Dealers Association (AIPDA).

The release by the association read, “The AIPDA delegation also briefed the ministry (Ministry of Petroleum and Natural Gas) officials about the pending increase in dealers’ margin since 2017 and the reasons for delay. The officials were convinced by AIPDA representation and assured of positive actions very soon.”

But why does the association want revision in commission rates? It said in a statement accessed by news agency PTI that proportionate increase in evaporation losses, and the increase in overhead expenses (salaries, bank charges, electricity bills, etc.) of petrol pump owners have also gone up in the last five years.

It noted, “Evaporation losses have increased proportionately. Also, the overhead expenses like bank charges, electricity bills, salaries, etc. have increased manifold during the last five years. Our constant demand to revise dealer commission has been overlooked by the OMCs (oil marketing companies). By doing so, OMCs are making their own network financially unviable.”

The association also sought the inclusion of petroleum products in the GST taxation regime in a bid to reduce petrol and diesel prices to Rs 75-80 per litre to control inflation. It also appealed to state governments to reduce value-added tax (VAT) on petrol and diesel and support one nation at one rate.

The AIPDA also wrote in the release, “Any futuristic/alternate fuels should be firstly provided at all the existing petrol pump sites across India to make a path for the survival of the existing dealers.”

States, where dealers will be joining the protest, are Andhra Pradesh, Assam, Arunachal Pradesh, Bihar, Delhi, Gujarat, Haryana, Himachal Pradesh, Karnataka, Kerala, Maharashtra, Manipur, Meghalaya, Mizoram, Nagaland, North Bengal, Punjab, Rajasthan, Sikkim, Tamil Nadu and Telangana.

(With agency inputs)