Petroleum dealers seek periodic revision of commission margins
Despite a sharp increase in expenses such as minimum wages, electricity tariffs, land rentals and insurance premiums, dealer commission rates have remained unchanged, the Federation said
The All Kerala Federation of Petroleum Traders has requested the Kerala government to intervene and push the Union Petroleum Ministry and oil marketing companies to adjust dealer commission rates periodically. This is necessary to keep pace with the increasing operational costs, including wages, electricity tariffs, land rentals, and insurance premiums.
The Federation's president, Tomy Thomas, emphasized this point in a memorandum presented to Chief Minister VD Satheesan. He also called for comprehensive studies and relief measures to counter financial losses caused by fuel evaporation, a problem exacerbated by Kerala's tropical climate. The Federation, representing approximately 2,000 petroleum dealers, is also advocating for the enactment of a special Pump Protection Act, akin to the Hospital Protection Act, to safeguard fuel stations and their staff from attacks.
Thomas highlighted the need for a single-window clearance system to streamline the renewal of licenses and no-objection certificates. The Federation expressed readiness to back the State's green energy projects by setting up electric vehicle charging points and solar panels at fuel stations. Additionally, they sought a mandatory viability study before approving new fuel stations, arguing that oil marketing companies were granting approvals without considering the existing station count or Kerala's fuel consumption rates, thereby impacting the financial sustainability of existing dealers.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
