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Petroleum dealers seek periodic revision of commission margins

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Petroleum dealers seek periodic revision of commission margins
SENSEX 77,301.40

+ 383.55

NIFTY 23,960.60

+ 149.75

CRUDEOIL 9,013.00

 -91.00

GOLD 142,604.00

+ 3,152.00

SILVER 186,510.00

+ 6,812.00

SENSEX 77,301.40

+ 383.55

NIFTY 23,960.60

+ 149.75

NIFTY 23,960.60

+ 149.75

CRUDEOIL 9,013.00

 -91.00

CRUDEOIL 9,013.00

 -91.00

GOLD 142,604.00

+ 3,152.00

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Despite a sharp increase in expenses such as minimum wages, electricity tariffs, land rentals and insurance premiums, dealer commission rates have remained unchanged, the Federation said

By BL Kochi Bureau

Updated - November 04, 2026 at 05:48 PM.

The All Kerala Federation of Petroleum Traders (AKFPT) has sought the State government’s intervention to urge the Union Petroleum Ministry and oil marketing companies to revise dealer commission margins periodically in line with rising operational costs.

Despite a sharp increase in expenses such as minimum wages, electricity tariffs, land rentals and insurance premiums, dealer commission rates have remained unchanged, the Federation said. It urged the State government to take up the issue, particularly in view of rising employee wage costs.

In a memorandum submitted to Chief Minister VD Satheesan, Tomy Thomas, President of AKFPT, also called for special studies and relief measures to address the financial losses incurred by dealers due to fuel evaporation, which is particularly high in Keralam’s tropical climate.

Representing around 2,000 petroleum dealers in the State, the Federation also demanded the enactment of a special Pump Protection Act, on the lines of the Hospital Protection Act, to prevent attacks on fuel stations and their employees, who provide round-the-clock public services. It also sought police protection for outlets operating during night hours.

Thomas said a single-window clearance system should be introduced to avoid delays in the renewal of licences and no-objection certificates (NOCs) by various government departments.

The Federation also expressed its willingness to support the State government’s green energy initiatives by installing electric vehicle fast-charging facilities and solar panels at fuel stations.

In a separate representation to Anoop Jacob, Minister for Food, Civil Supplies and Legal Metrology, AKFPT sought a mandatory viability study before granting approval for new fuel stations.

The Federation pointed out that oil marketing companies were continuing to sanction new retail outlets without adequately considering the existing number of fuel stations or the State’s fuel consumption levels, affecting the business viability of existing dealers.

It urged the Civil Supplies Department to assess the business potential, including projected fuel volumes and the financial viability of existing outlets before granting NOCs for new stations.

Published on November 4, 2026

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Source: The Hindu BusinessLine — Commodities ↗

Figures reflect the source report and its stated period. This article is for information and is not investment advice.