Here's why petrol and diesel will cost you more from today

Get ready to shell out more money for petrol and diesel as the oil marketing companies have decided to increase the dealer commission they pay fuel pump owners.

According to a Financial Express report, All India Petroleum Dealers Association Ajay Bansal said that the new commission rates will be effective from August 1.

The dealer commission forms part of the price of the fuel that consumers pay. Currently, the commission is Rs 2.55 per litre for petrol and Rs 1.65 per litre for diesel, said the report.

The association has been asking for a Rs 1 per litre hike for petrol and Rs 0.72 litre for diesel.

“The national average sale per outlet is 170 kilolitres of fuel every month. Assuming this sale, a dealer makes only 14 paise per litre which converts to around Rs 25,000 of profit per month,” said Bansal. 

After the successful implementation of its daily revision of Retail Selling Prices (RSP) of petrol and diesel, Public Sector Oil Marketing Companies (OMCs) too, decided to start daily revision in RSP of petrol and diesel in the entire country with effect from June 16, 2017.