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Sep 30, 2012 at 10:29am IST

No plans to go on strike, says Petroleum Traders body

New Delhi: Federation of All India Petroleum Traders, an umbrella body which claims to represent most of the 42,000 petrol pump operators in the country, on Sunday said it has no plans to go on strike as the government was considering raising dealers commission. FAIPT said there was "no truth" in petrol pumps not making any fuel purchases on October 1 and 2. "Petrol pumps all over the country shall be operating normally without any disruption on October 1 and 2," it said in a statement.

"The Ministry of Petroleum and Natural Gas has already written to the oil marketing companies to address the issues and demands of the dealers within a period of 15 days and as such there is no reason or occasion for members of FAIPT to resort to any agitational approach."

The Confederation of Indian Petroleum Dealers, which some months back broke ranks from FAIPT headed by Ashok Badhwar, had last week said dealers were in "deep financial trouble" because of increased operational costs and are "left with no option but to cut the cost of operations".

No plans to go on strike: Petroleum Traders body

Petrol pump operations are seeking higher commission and linking it to sale price of the fuel.

"With our backs to the wall, it was resolved that the retail outlets will operate single shift from October 15 to cut costs on manpower and electricity as acute austerity measures," CIPD said claiming dealers would not buy petrol and diesel from oil companies on October 1 and 2.

FAIPT said dealers commission on petrol needs to be raised from Rs 1.49 per litre on petrol currently to Rs 2.16 a litre and that on diesel from Rs 0.91 to Rs 1.32 per litre, as per a cost analysis done on an all India basis. Dealers commission was last revised in July 2011 when it was raised to Rs 1.499 per litre on petrol and Rs 0.912 per litre on diesel. Petrol pump operations are seeking higher commission and linking it to sale price of the fuel.

The Oil Ministry on September 20 ordered the three fuel retailers to work out revised dealers commission within a fortnight. "...oil marketing companies are requested to rework the quantum of dealer's commission of diesel (as due) keeping in mind escalations that may have occurred in the mean time," an oil ministry order said asking oil firms to submit proposal by month end.

"Since petrol is a deregulated product, oil marketing companies may complete the exercise for required revision of quantum of dealer's commission on petrol (currently due) and announce the same within a fortnight," it added.

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