Petrol pumps to do away with free services | punjab | Hindustan Times
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Petrol pumps to do away with free services

Vehicle owners will soon have to pay up for inflating tyres with air and using toilets at petrol pumps. The oil ministry has agreed to the demand of petroleum dealers for charging fee for the 'free services' so that they could get some relief.

punjab Updated: Nov 03, 2012 23:09 IST
Rajeev Bhaskar

Vehicle owners will soon have to pay up for inflating tyres with air and using toilets at petrol pumps.


The oil ministry has agreed to the demand of petroleum dealers for charging fee for the 'free services' so that they could get some relief.

"We have met the petroleum minister to rake up the financial issues of petroleum dealers and apprised him of the involvement of high capital and low rate of profit to the dealers and demanded charging for the services being provided free of cost to the consumers," Federation of All India Petroleum Traders (FAIPT) president Ashok Badhwar told Hindustan Times.

The ministry has agreed to the demand and instructed the oil companies to consider in the upcoming quarterly meeting with the Federation, Badhwar said it was expected that the charges for the services would be applicable from January 2013.

Hailing the increase in the rate of commission to petroleum dealers by 30 paise per litre on petrol and 19 paise per litre on diesel, Badhwar termed it as "half the battle won" and said that still there was acute need to extend financial relief to petroleum dealers.

He said a committee headed by Apurv Chandra constituted on the demand of petroleum dealers has also justified the demands of federation and recommended compensation of evaporation from extending 0.06% to 0.075% for the dealers.

The committee also recommended that the commission of the dealers should be increased twice in January and July, but it was still to be implemented, he added.

"In every increase of petroleum products, petroleum dealers are the most sufferer, as they have to put more capital to buy the product but the margin of profit remains the same, as the commission is set on the basis of volume of product rather than its price," he added.

"The Federation wants uniformity in the rate of petroleum products in the country, so that the menace of smuggling could be tackled," Badhwar said adding that the government had assured that once the regime of Goods and Services Tax (GST) was implemented, there would be automatic uniformity in the rate of every product with the abolition of value added tax, which is currently a state subject.

Badhwar admitted fissures in the Punjab Chapter of the Petroleum Dealers Association saying the Federation had already de-recognised the Punjab Petroleum Dealers Association (PPDA) headed by JP Khanna, as the latter had failed to attend any meeting of the Federation for the past six years. Now a new association would be constituted and the Federation would give it recognition. The Federation had no truck with Khanna's association, which had limited number of members, he added.

The PPDA had got itself affiliated with the Confederation of Indian Petroleum Dealers.