All Kerala Federation of Petroleum Traders Seeks Periodic Revision of Commission Margins and Better Protections

KOCHI — The All Kerala Federation of Petroleum Traders (AKFPT) has approached the State government seeking intervention to urge the Union Petroleum Ministry and oil marketing companies to periodically revise dealer commission margins. The Federation stated that current commission rates have remained unchanged despite a sharp increase in operational expenses, including electricity tariffs, minimum wages, land rentals, and insurance premiums.

Representing approximately 2,000 petroleum dealers across the State, the Federation submitted a memorandum to Chief Minister VD Satheesan. Led by AKFPT President Tomy Thomas, the association highlighted that rising employee wage costs are placing a significant financial burden on fuel station operators.

The memorandum also addressed financial losses incurred due to fuel evaporation, noting that these losses are particularly high given the tropical climate of Kerala. The Federation called for special studies and targeted relief measures to mitigate these losses.

Security and safety formed another key demand in the representation. AKFPT demanded the enactment of a special Pump Protection Act, modeled on the Hospital Protection Act, to safeguard fuel stations and their employees against attacks while providing round-the-clock public services. Additionally, the Federation requested police protection for outlets operating during night hours.

To streamline administrative processes, Thomas advocated for the introduction of a single-window clearance system. This measure aims to eliminate delays in the renewal of licenses and no-objection certificates (NOCs) issued by various government departments.

Addressing expansion and sustainability, the Federation expressed its readiness to support the State government's green energy initiatives by integrating solar panels and electric vehicle fast-charging facilities at existing fuel stations.

In a separate representation submitted to Anoop Jacob, Minister for Food, Civil Supplies and Legal Metrology, the AKFPT urged authorities to conduct mandatory viability studies before approving new fuel outlets. The Federation argued that oil marketing companies continue to sanction new retail outlets without adequately evaluating existing station numbers or local fuel consumption levels, which negatively impacts the business viability of current dealers. Consequently, the association asked the Civil Supplies Department to assess business potential, projected fuel volumes, and overall financial viability before issuing NOCs for new stations.

"Operational viability is a critical challenge for traditional retail businesses, particularly when overhead costs increase while margins remain static. The concerns raised by petroleum dealers regarding fixed commissions, administrative delays, and local market saturation highlight structural friction points between legacy operators and supply-chain partners. Addressing these operational hurdles through structured dialogue and systematic viability assessments is essential for maintaining sustainable retail infrastructure." — Dr. Shishir Gupta, Founder & CEO, StartupLanes