Petroleum dealers may have called off a strike to not lift fresh stocks from June 16, following interventions of petroleum minister Dharmendra Pradhan, but they have also got the minister's nod for a promise to hike petroleum dealers commission rates.
According to informed sources in the petroleum and natural gas ministry, the decision was taken at a meeting attended by Pradhan with the All India Petroleum Dealers Association members in Mumbai.
"During the meeting, both sides kept their perspectives. It was the union's viewpoint that they would not be able to effect new prices from midnight, and that was agreed to by the minister," said the ministry of petroleum and natural gas official.
"A decision about a hike in dealers commission would also have to be taken in the near future as part of yesterday's agreement," said the official, who was part of Pradhan's entourage for the discussions in Mumbai to convince dealers about lifting oil stocks and breaking the strike.
The Petroleum Price Advisory Committtee (PPAC) under MoPNG sets the commission rate for dealers, which is eventually passed on to the consumer price of petrol and diesel.
"The PPAC report for a revision is due and likely to be presented to me by July 31," said K.D.Tripathi, Secretary, MoPNG, when asked about the proposed revision of dealers' commission.
Confirming the development, petroleum dealers said that five to ten per cent hike is expected from the current commission payable to petroleum dealers.
"Dealers are receiving the commission in two parts. One is a fixed component and the other a variable component of petrol and diesel prices as commission. After July 31, we are expecting both the fixed and the variable components of the commission on petrol and diesel prices to be revised upwards by five to ten per cent," said Nishit Goel, managing committee member, All India Petroleum Dealers Association.
Once the PPAC advises the government on the rate revision for dealers' commission, minister Pradhan is likely to take it up with oil marketing companies.
Depending on approval from OMCs, the new rates are likely to be brought in effect before August 15. The revised dealers' commission will be included in the daily adjusted consumer price of all fuels.
