Higher trade margin demand by CNG dealers
After a victory in Gujarat, CNG dealers are pushing for higher commissions across the country equal to petrol and diesel commissions.
"We have sent many letters to CGD companies asking for this," says Ajay Bansal, president of the All India Petrol Pump Dealers Association (AIPDA). "There has been no resolution to this issue; if this situation continues, we will have no choice but to consult our members and issue a deadline (to CGD companies) to resolve this issue or face protest action."
On average, dealers now get a commission of Rs3.8/litre ($0.05) on petrol or 4% and Rs2.6/litre ($0.03) on diesel or 3% from state-owned oil companies, last revised five years ago. But CNG retailers, on average, get only Rs1.5/kg ($0.02) across India, a margin of just under 2%.
"Standalone CNG dealers get even lower trade margins compared to dealers who mainly sell petrol and diesel and have CNG pumps as well," we hear. Bansal wants these disparities erased.
He stresses that in a standalone CNG outlet, the dealer invests money and should get more margin than in a CNG dispenser which shares space with petrol and diesel dispensers at a station. "Standalone CNG pump dealers should certainly not get a lower commission," he asserts.
CNG dealers in Gujarat won a significant victory last month (March) when state-owned oil companies and gas retailers agreed to increase commissions from April 1 (2023). This followed a threat from the Federation of Gujarat Petroleum Dealer's Association (GPDA) to indefinitely shut down all CNG outlets in the state from March 3 (2023) if their commission was not increased.
A GPDA source says CNG outlet dealers in CODO (Company Owned Dealer Operated) petrol stations will get Rs1.93/kg ($0.02) from April 1 against Rs1.74/kg previously in Ahmedabad. Similar dealers in the rest of Gujarat will get Rs1.92/kg from April 1 against Rs1.63 previously.
Dealer Owned Dealer Operated (DODO) petrol stations and standalone CNG stations in Ahmedabad will get Rs2.78/kg ($0.03) from April 1 against Rs1.90/kg previously. Our GPDA source adds dealers in the rest of Gujarat will get Rs2.24/kg ($0.03) from April 1 against Rs1.78/kg previously.