Question : MARKETING MARGIN OF OIL PSUS

(a) whether the Government are aware that the marketing margin of oil PSUs has increased on the sale of diesel and petrol after the dismantling of APM;

(b) if so, whether the increased costs of salaries, electricity, depreciation and competition etc. are main factors affecting adversely on the economic viability of retail outlets;

(c) if so, whether such factors also adversely affect the economic viability of petrol pump dealers;

(d) if so, whether the oil PSU`s are taking care of the situation regarding the viability of dealers and Coco operators;

(e) whether the remuneration of Coco Operators was initially fixed as 80 percent of dealers commission in principal;

(f) if so, whether this formula has been dropped or amended; and

(g) if not, the time by which the same shall be implemented?

MINISTER OF STATE IN THE MINISTRY OF PETROLEUM & NATURAL GAS (SMT. SUMITRA MAHAJAN)

(a) to (d): With the dismantling of Administered Pricing Mechanism (APM) in the petroleum sector effective 1.4.2002, the Government is no longer fixing the dealers` commission on petrol and diesel, which is now being fixed by the oil companies.

The oil companies had last revised the dealers` commission effective 1.11.2002. As per this revision, the dealers` commission on petrol was increased from Rs.613 per KL to Rs.639 per KL and on diesel from Rs.365 per KL to Rs.385 per KL. The dealers` commission comprises of various components which inter-alia include salary and wages, electricity charges etc.

(e): No, Sir.

(f) & (g): Do not arise in view of (e) above.