Pump operators urge Oil Ministry to revise petrol, diesel margins

Petrol pump operators have written to the Oil Ministry, requesting a review and adjustment of the margins they receive from oil marketing companies (OMCs). Federation of All India Petroleum Traders (FATPT) President Ashok Badhwar wrote to Oil Secretary Neeraj Mittal, urging him to intervene and revise the margins on petrol and diesel.

The operators claim that their operating costs have risen significantly, and that they deserve fair compensation for their work. The last increase in dealer margins occurred in 2017 and there has only been a small increase in October 2024.

Monty Sehgal, national spokesperson for FATPT, explained that fuel prices have soared since 2020, causing a sharp rise in input costs. The operators argue that the government has ignored the inflation component in its calculations, leaving the dealers in a difficult financial situation. Sehgal said that the last margin hike was granted after a seven-year gap, disregarding the inflation index as market conditions changed between 2018 and 2024.

The operators are frustrated that the settlement reached in October 2024 did not include the promised subsequent hikes based on increased expenses.

The operators estimate that a retail outlet selling 170 kilo litres per month would leave a dealer with only around ₹37,500 in net business return after paying operational costs. More than 80% of retail outlets in the country operate with sales of less than 100 kilo litres per month. Sehgal urged the OMCs to consider a realistic revision of net dealer remuneration, suggesting an updated uniform remuneration of ₹2 lakh per month to ensure financial stability and dignity for the dealers.

He also highlighted that revised wages for the state governments need to be taken into account, as the New Labour Code now mandates three-shift operations. The operators insist that the current margins are inadequate for more than a single shift operation.