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Dealers cashing three times commission on petrol, four times on diesel than 13 years ago

Take a look at how and how much petroleum products dealers in India earn from selling petrol, diesel and LPG.

BT Online   New Delhi     Last Updated: June 16, 2017  | 17:03 IST
Dealers cashing three times commission on petrol, four times on diesel than 13 years ago

More than 59,000 petrol pumps presently cater to the fuel needs of India and have been getting good returns out of it too. Reports suggest that commission dealers earn on petrol has almost tripled in the past 13 years, whereas the same for diesel has almost quadrupled in this time period.

Bigger money purse

As of April, 2017, petrol pump owners earn Rs 2020.38, plus 0.86 per cent of retail price, as commission for selling every kilolitre of petrol, stated a study by Newsflicks. The same figure in April, 2004 stood at Rs 778. The commission in case of diesel, as of now, is Rs 1502.13 and 0.27 per cent of retail price per kilolitre, against Rs 425 for the same quantity.

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What oil companies pay dealers

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. All three companies pay Rs 1.65 as dealer commission on per litre of diesel.

Fuel flows like water

The growing number of vehicles across the country has led to an increase in fuel demands too. On an average, every petrol pump sells almost five lakh litres of fuel, petrol and diesel both, every month. Vehicle owners buy almost eight thousand litres of petrol alone every day, assuming that equal number of petrol and diesel vehicles purchase fuel from the fuel stations. Total daily average sales of petrol and diesel going up to 15,667 litres, the report says.

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Gas not gassed up

Dealers selling liquefied petroleum gas (LPG) cylinders are not doing badly themselves. The Newsflicks report mentions that commission for LPG cylinders has also quadrupled over the past 13 years. Dealers even get an additional commission for every LPG cylinder sold. Presently, oil and petroleum companies pay dealer commission at Rs 47.48 on every domestic LPG cylinder (weighing 14.2 kilograms), as opposed to Rs 16.71 that was paid 13 years ago.

Petroleum products are in great demand in Indian kitchens too. Every LPG cylinder dealer in Delhi sells around 12,000 every month or 400 cylinders every day. This translates to Rs 18,436 in commission that every dealership earns on a daily basis. In case of Mumbai, every one of the 120 LPG distributors in the city sells almost 667 cylinders per day. We are talking around 80,000 LPG cylinders every day being purchased in the economic capital of India. With sales figures like this, every distributor in Mumbai pockets Rs 30,727 in commission daily.

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