Petrol pump dealers threaten strike over sale commission

Petrol pump dealers have threatened to go on an indefinite strike from September 20, if the commission they earn on sale of petrol and diesel is not increased.

Last Updated: Sep 05, 2010, 15:58 PM IST

New Delhi: Petrol pump dealers have threatened to go on an indefinite strike from September 20, if the commission they earn on sale of petrol and diesel is not increased.

The Federation of All India Petroleum Traders (FAIPT), which claims to represent all of the 38,700 petrol pumps in the country, said it has been, for the past two years, seeking
a rise in dealers commission as the cost of maintaining retail stations has increased.

Staff wages besides power and water tariff have increased and so FAIPT demanded that they be paid at least 5 percent of the invoice value as commission instead of the present
practice of paying a fixed margin.

"FAIPT has taken a decision that if our legitimate demands are not discussed and solved, we will have no option but to close all 37,800 petrol pumps all over India from September 20 till our demands are met," the association said in a press release here.

The association also demanded that mushrooming of petrol pumps, which has cut profitability of existing retail outlets, be stopped.

"If all concerned authorities allow to establish a petrol pump at a particular location, only a single pump should be opened by PSUs and there should not be competition amongst the PSU oil companies," it said.

FAIPT also demanded uniform price of petroleum products throughout the country.

PTI