(ET)
State oil companies have increased the commission for petrol pump dealers by up to 55% under a revised formula that accounts for higher staff wages and, for the first time, the return on investment in land used for the filling station.
“This is a good move by the government and oil companies. The decision will mainly benefit lowselling retail outlets, many of which were running on losses,” said Ajay Bansal, president of All India Petroleum Dealers’ Association. Indian Oil Corp. declined to comment for the story. Bansal said the commission hike is with effect from August 1. It wasn’t clear if fuel prices reflected the increased commission.
The price of petrol was Rs 65.40/litre in New Delhi on August 1, 14 paise higher than the rate on Monday, according to the Indian Oil website. The price of diesel was 8 paise higher.
