Ludhiana: As retail fuel prices continue to surge, petrol pump owners in Ludhiana are reporting a deepening financial crisis, driven by stagnant dealer commissions and ballooning operational overheads. Dealers warn that while they must invest significantly more working capital to maintain stocks at current high prices, their profit margins have failed to keep pace with the rising costs of electricity, staff salaries, and general maintenance.
Dealers Demand Proportional Commission Hike
Chairman of the Petroleum Pump Dealers Association, Ashok Sachdeva, emphasised that the sharp increase in fuel rates necessitates a proportional rise in commissions to cover the heavier investment burden. Dealers currently receive approximately Rs 3.8 per litre for petrol and Rs 2.4 per litre for diesel. They describe these rates as insufficient, noting that the last commission revision in 2024—a 65 paise hike for petrol and 44 paise for diesel—was largely considered minuscule and failed to account for years of inflation.
Unimplemented Recommendations Add to Frustration
This frustration is compounded by the lack of periodic adjustments. Dealers pointed to the 2012 Apoorva Chandra Committee report, which recommended biannual commission reviews in January and July to account for changing operational costs. Despite these clear guidelines, the industry claims the recommendations remain largely unimplemented, leaving pump operators struggling to maintain profitability as their margins continue to decline.
Dealers also highlighted that the rising cost of electricity and staff salaries, along with general maintenance expenses, have further eroded their earnings. Without a timely revision in commissions, many pump owners fear they may be forced to shut down operations, which could disrupt fuel supply in the region.
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