OMCs are unlikely to amend their commissions today, according to senior officials, because the case is still pending. .Also, according to the Marketing Discipline Guidelines, which were updated in 2017, dealers have not passed on the benefit of the earlier rise in commissions to employees.
Dealer margins are supposed to be raised every six months, according to an association, but despite a substantial increase in gasoline prices and operational costs, the OMCs haven’t done so since 2017. Petrol dealers from 24 states are expected to join the protest, according to the Association. However, because there is adequate gasoline in the bunkers, the supply is unlikely to be affected.
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“On Tuesday, May 31st, we will not purchase petrol or diesel from oil marketing companies (OMC) in 24 states across the country in protest of their commissions not being revised despite the increase in fuel and diesel prices,” said the President of the Delhi Petrol Dealers Association.
Dealer margins are supposed to be raised every six months, according to the Association, but despite a sharp increase in fuel prices and operational costs, the OMCs haven’t done so since 2017.
According to the Association, the federal government’s drop in petrol and diesel prices through excise duty reductions has put a strain on petrol stations, resulting in significant losses.
The Centre announced a cut in excise duty on petrol by Rs 8 per litre and on disel by Rs 6 per litre earlier this month, in a significant measure aimed at offering comfort to consumers affected by high fuel prices.
Delhi, Punjab, Haryana, Gujarat, Rajasthan, Maharashtra, Tamil Nadu, Karnataka, Himachal Pradesh, Bihar, Telangana, Andhra Pradesh, Kerala, Assam, Meghalaya, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Sikkim, and West Bengal are among the states where petrol dealers will participate in the protest.
The Petrol Pump Dealers Association is planning a ‘no purchase of petrol and diesel’ demonstration on Tuesday in response to the oil marketing corporations’ refusal to boost their profit. However, the protest is unlikely to affect supplies because fuel bunkers have enough supplies to last a few days.
The demonstration will be attended by members from 22 states, according to the Association.
“Even though oil corporations and dealer groups agreed that dealer margins would be revised every six months, it hasn’t been done since 2017.”
“Because fuel prices have nearly quadrupled since 2017, business working capital has nearly doubled, resulting in more loans and bank interest,” the organisation stated in a statement. “Evaporation losses have risen in lockstep with inflation. In addition, overhead costs such as bank fees, electricity bills, salaries, and so on have skyrocketed in the last five years.
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