Maharashtra petrol dealers stage protest demanding increase in dealer commission

In Maharashtra, petrol dealers across the state staged a one-day strike on Tuesday, demanding an increase in dealer margins/commissions, which have remained unchanged since 2017.

Petrol pump dealers across Maharashtra staged a one-day protest on Tuesday, May 31, demanding an increase in dealer margin/commission which has not been incremented since 2017. About 7.5 thousand petrol pump dealers in the state refused to buy petrol and diesel to register their protest.

"The agitation is an all-India decision; 27 states are already participating. We want the government and the oil-marketing companies to take notice of our plight and the situation. It is not a shut down or a strike. The consumers can comfortably fill fuel without worrying about shortage. There is no need to panic purchase as ample stock is available to last for 48 hours. Our main concern is that, despite writing over a dozen letters to the government, no one has taken notice. It is like one-way traffic. Several dealers even agitated with placards at depots and terminals and some in Pune were even arrested. The petroleum ministry should engage in talks with us and resolve this issue that has been pending with them for the last five years," said Ravi Shinde, former president of Petrol Dealers Association (PDA).

Petrol pump owners incurred huge losses to the tune of crores of rupees when the Centre cut excise duty on petrol and diesel by Rs 8 per litre and Rs 6 per litre respectively on May 21, according to the PDA.

The dealers said they often have to incur losses when fuel prices decline as they stock fuel at higher rates and have to sell at lower /revised rates.

"We have two demands. The margin issue has not been revised, which is supposed to happen every year. Expenses on account of wages go up. We pay salaries as per government directives, but still there has been no increase in the dealer commission. Expenses are steadily rising but there is no additional income. Secondly, we were hit badly twice last year due to reduction in excise duty. Every dealer has lost lakhs as the government changed the excise duty as per its convenience without informing us. We pay in advance and yet we take the entire hit of the excise reduction. Consumers are happy, but it comes at our cost. Crores are invested, so shutting down pumps is difficult, but right now we are not purchasing. We hope the petroleum ministry will help to resolve this issue soon," added Shinde.