Deora rejects oil traders146; strike threats

The FAIPT, which has 32,000 dealers as members, has threatened a strike for its long-pending demand for a hike in commissions and a raise in the evaporation loss ceiling. It wants the dealers8217; margin to be fixed at 5 per cent of the invoice value 8212; a move that would translate to a commission of Rs 2.40 per litre on petrol and Rs 1.60 on a litre of diesel in Delhi. They presently get a fixed commission of 80 paise on petrol and 50 paise on diesel.

The ministry, said sources, would have none of this as the higher margin would mean either consumer prices going up by Rs 1.60 and Rs 1.10 for petrol and diesel, or an increase in the losses of oil marketing companies. 8220;We are not worried about the one-day strike on April 13. However, we will definitely have an action plan to stop the indefinite strike,8221; said a ministry official. At the meeting, officials threatened to take over the retail outlets under the Essential Supplies Act, said sources. When that threat failed, Deora tried to placate the FAIPT representatives with a promise that the 8220;government will endeavour to take a decision on the demand for increase in commission on petrol and diesel by May 1 after consultation with OMCs8221;. The country has a little above 34,000 retail outlets, of which 32,000 are dealer owned and the rest are either company-owned and operated, or are being by private individuals under annual contracts.

On FAIPT8217;s demand for raising the evaporation loss ceiling from the current 0.6 percent, the ministry offered to expeditiously examine the issue and take an appropriate decision after the Indian Institute of Petroleum submits a study report by mid-July. The FAIPT wants the government to appoint an appellate authority where the dealers can appeal against 8220;high-handedness8221; of the officers of oil companies. It wants the OMCs to provide the dealers with marker kits to test adulteration in petrol and diesel.