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Petroleum dealers demand hike in commission

The Federation of All India Petroleum Traders has urged the government to consider percentage-based commission on ad valorem basis for the dealers of petroleum products in view of stiff competition with low margins and high costs.

''The cost of fuel has gone up many times, but our commission has not increased proportionately,'' Ashok Badhwar, president of the federation, said.

''The petroleum dealer is surviving with very low margins (commission), very heavy expenses (minimum wages, ESI, PF, gratuity, bonus and other perks for the staff) and high costs (electricity, provision of free air for vehicles, etc),'' he said.

He pointed out that in 1965, the dealers' commission was 8.3 per cent which had now come down to less than one per cent.

Badhwar said by the year 2000, there would be a cut-throat competition when the multinational companies will enter India. ''With this view in mind, all oil companies are investing heavily for upgrading the standards and beautifying the retail outlets,'' he said.

He said the companies had adopted an elaborate system of safeguards to prevent adulteration of fuel in the retail outlets. Denying reports that adulteration was being done on a large-scale at many outlets in the capital, Badhwar said sales officers of the oil companies inspect the outlets and take samples for quality and quantity and submit their reports at regular intervals.

''Recently, over 300 petrol pumps in Bombay were inspected by the officials of the petroleum ministry and not a single irregularity was found in any of the outlets,'' he pointed out.

Regarding the underground tanks used for adulteration as mentioned in the report, Badhwar said all equipment and tanks are installed by the oil companies as the dealers are only licencees.

''Even if the oil company wants to put a new tank, it has to seek permission from various departments of the government including the explosives and fire departments besides the municipal bodies,'' he said, adding, ''dealers are not allowed to put their own tanks or any other equipment.''

He admitted the existence of small shops in some localities in the city which sold unauthorised petrol and loose oil. ''I have just no idea from where they are getting the petroleum products,'' he said.

Badhwar, however, warned that if any dealer resorted to malpractices, the federation would take action against him.

UNI

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