The Indian government commissioned another hike on petrol and diesel fuels in the country on October 26, 2012. The decision comes as the government has decided to raise the commission offered to petrol pump owners by 30 paise per litre for petrol, while 18 paise per litre for diesel.
Some official sources affirmed on October 25, 2012 that the petroleum ministry has hiked commission paid to petrol pump dealers by 30 paise, from Rs. 1.499 per litre to Rs. 1.799 per litre (Petrol). Further, the increase in commission offered on diesel has been increased by 18 paise, from 91 paise to Rs. 1.09 per litre.
At present, the domestic consumers are offered petrol at a retail value of Rs. 67.90 per litre and diesel at Rs. 46.95 per litre (in New Delhi). Post hike, the petrol and diesel will carry retail values of Rs. 68.20 per litre and Rs. 47.13 per litre, respectively.
Reportedly, the last hike in dealer commission was realised in July 2011, with an increase of 28 paise and 15.5 paise on petrol and diesel, in the order of their mention. Accordingly, petrol pump dealers have been appealing the Indian government to revise the commission pay off, as operating costs like electricity and transportation have witnessed a sharp rise lately. The petrol pump operators wished an increase of 67 paise on petrol and 42 paise on diesel commissions.
Further, the Indian government has already increased the commission pay off to LPG distributors in the country by Rs. 11.42 per cylinder, which has been in effect since October 7, 2012. In New Delhi, the subsidised LPG cylinder is offered to general public at Rs. 410.42 at present.
The price hike will definitely hurt the pockets of common Indian consumers and may come effective, once the oil ministry decides to issue formal letters to the oil distributing companies, thereby ordering them to increase the prices.
