How Petrol Pump Dealerships Are Allotted

Suresh Gopi replied that the dealership commission for petrol pumps managed by PSU OMCs has not been revised in the last seven years, despite high inflation and increased operational costs.

India Edited by Updated: Aug 01, 2024, 8:09 pm
How Petrol Pump Dealerships Are Allotted

What Suresh Gopi Said On How Petrol Pump Dealerships Are Allotted

The Minister of State for Petroleum and Natural Gas, Suresh Gopi, addressed questions from Lok Sabha MP Amrinder Singh Raja Warring in parliament today regarding the state of petrol pump dealership commissions and the allotment of petrol pumps and gas agencies to the families of martyrs.

In a written reply, Suresh Gopi replied that the dealership commission for petrol pumps managed by Public Sector Undertaking (PSU) Oil Marketing Companies (OMCs) has not been revised in the last seven years, despite high inflation and increased operational costs. The last revision took place in August 2017, which included adjustments for higher wages based on the Minimum Wages notified by the central government.

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However, following this revision, many dealer federations challenged the amendments regarding the payment of higher wages, leading to ongoing legal battles. The matter remains sub-judice, with a Special Leave Petition filed before the Supreme Court challenging a Delhi High Court order that upheld the amendments, added the minister of petroleum and natural gas.

“Discussions and Negotiations regarding revision of dealer commission are held bilaterally between PSU OMCs and RO dealers’ federations. Government is aware of these discussions and has been supportive of such engagements to resolve pending issues affecting revision,” said Gopi.

Replying to Warring’s question, Gopi stated that the central government has introduced special schemes for the direct allotment of ROs to the families of defence personnel who laid down their lives during the Kargil War, the Parliament Attack, and the Mumbai Attack. A total of 322 ROs have been allotted to these families, said the minister.

Special Schemes for Martyr’s Families

Public Sector OMCs also reserve RO dealerships for the widows and dependents of Armed Forces members who died in war or due to causes attributable to their service. As of June 30, 2024, 451 ROs have been allotted under this category, said Gopi.

He further added that for LPG distributorships, the OMCs follow the Unified Guidelines for Selection, which include a reservation of 8% for the Government Personnel (GP) Category, which covers widows and dependents of Armed Forces personnel and Central Paramilitary Forces who died while performing their duties, disabled personnel from these forces, ex-servicemen, and widows/dependents of personnel from Central/State Governments and PSUs who died while performing their duties. As of June 30, 2024, 277 LPG distributorships have been commissioned under this category, stated Gopi.

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Responding to the Ludhiana MP’s question regarding measures taken by the government to ensure their secure livelihood, Gopi stated, “To ensure the sustainability of petroleum retail outlets and the quality of their services to customers, OMCs have added new generation fuels viz. premium MS/HSD, alternate fuels like Compressed Natural Gas (CNG), Compressed Bio Gas (CBG), Electric Vehicle Charging Stations (EVCS) and have been encouraging non-fuel businesses like Pollution Under Control (PUC) check, Insurance, Courier service, Service center for vehicle, Grocery stores, Convenience stores, Food & Beverages outlets etc.”