Question : Commission paid to Petrol Pump Dealers

(a) the rate of commission paid to petrol pump dealers by various Oil Marketing Companies (OMCs) on various petroleum products at present, State/UT-wise;
(b) whether the dealers of petroleum, gas, diesel and kerosene are being paid different rates of commission by the various public sector Oil Marketing Companies (OMCs) and if so, the details thereof and the reasons therefor; and
(c) whether the Government has received any requests from dealers of various States/UTs for increasing the rate of commission being paid to them and if so, the details thereof and the response of the Government thereto?

Answer given by the minister

MINISTER OF STATE (I/C) IN THE MINISTRY OF PETROLEUM AND NATURAL GAS
(SHRI DHARMENDRA PRADHAN)
(a): The Public Sector Oil Marketing Companies (OMCs) have informed that the rates of Dealers’ Commission with effect from 16.11.2016 on Petrol and Diesel are as under:
Product
Rate of commission
Petrol
Rs. 2006.33/KL + 0.875% of Product Billable Price
Diesel
Rs. 1491.72/KL + 0.28% of Product Billable Price
(b): Public Sector OMCs pay similar commission to their Dealers/Distributors.
(c): The prices of Petrol and Diesel have been made market determined by the Government effective 26th June, 2010 and 19th October, 2014 respectively. Dealers’ Commission on these petroleum products are being decided by the Public Sector OMCs. The Public Sector Oil Marketing Companies have informed that they have revised Dealer Commission on Petrol and Diesel w.e.f. 16.11.2016.
As regard PDS Kerosene, Dealers’ Commission has been revised by the Government on 28th October, 2016. These rates of commission serve as guidelines for State/District and local authorities for fixing the retail (consumer) selling price of kerosene in urban/semi urban and rural areas. Further, the Government has revised Distributors Commission on subsidized Domestic LPG on 27th October, 2016.
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