Petrol pump dealer commission: how it works and the latest rate

Short answer

A petrol pump dealer is paid a commission on every kilolitre of petrol and diesel sold: a fixed rupee amount plus a small percentage of the product billable price. PPAC's table shows the latest revision, effective 1 December 2024, as Rs 3,144.03 per KL plus 0.870% for petrol and Rs 2,332.51 per KL plus 0.266% for diesel PPAC dealer commission table. That is what the company pays before the dealer's own costs, not the dealer's profit, as checked on 9 November 2026.

MDG Services makes Dealer Kavach, an app for petrol pump dealers, so this page comes from the maker of a product it may mention. It is general information, not legal, tax or financial advice. Rules, fees and guidelines change and differ by oil company and state: every fact here names its source and the date we checked it, so confirm it with the oil company or the authority before you act. We do not sell, allot or arrange dealerships or licences.

Facts checked on 9 November 2026. Published by MDG Services on 9 November 2026.

How does the dealer commission work?

The oil company pays the dealer a commission on each kilolitre (KL) of petrol and diesel sold. It has two parts: a fixed amount per KL, and a percentage of the product billable price, which the oil company sets PPAC dealer commission table. PPAC, the Petroleum Planning and Analysis Cell, names circulars of the petroleum ministry and the oil companies as its source PPAC dealer commission table.

What are the latest rates?

As on 9 November 2026, the last row of PPAC's table is 1 December 2024, and the table shows no revision between 19 February 2019 and 30 October 2024 PPAC dealer commission table.

Effective	Petrol	Diesel
19 Feb 2019	Rs 2,637.80/KL + 0.859%	Rs 2,000.60/KL + 0.257%
30 Oct 2024	Rs 3,154.00/KL + 0.859%	Rs 2,340.16/KL + 0.257%
1 Dec 2024	Rs 3,144.03/KL + 0.870%	Rs 2,332.51/KL + 0.266%

A worked example

These numbers are made up: a pump sells 100 KL of petrol in a month, and the billable price is Rs 55,000 per KL (the oil company sets the real one). The petrol rate is the one effective 1 December 2024.

Step	Working	Result
Fixed part	3,144.03 x 100 KL	Rs 3,14,403
Percentage part	0.870% x 55,000 x 100 KL	Rs 47,850
Commission	3,14,403 + 47,850	Rs 3,62,253

That is about Rs 3.62 a litre, paid before the pump's costs. It shows the method, not what any pump earns.

What is the commission not?

It is not the selling price, and not profit. In practice, staff, electricity, losses and interest are paid out of it.

Where the company built the facilities, a licence fee per KL may be recovered: PPAC lists Rs 443.50 for petrol and Rs 369.58 for diesel at "a" sites, and Rs 199.97 and Rs 166.64 at "b" sites, with 18% GST PPAC dealer commission table. The June 2023 dealer guideline lists different figures (Selection brochure June 2023, cl.8(E); see the cost page), so check your own agreement. Since 1 August 2017, eligible dealers also get slab-based incentives through credit notes PPAC dealer commission table.

Where this comes from

PPAC dealer commission page: the table and notes.
Selection brochure, June 2023: licence fee.

Questions people ask

01How does a petrol pump dealer earn money?

Through the commission on each kilolitre sold, and slab-based incentives for eligible dealers, paid through credit notes PPAC dealer commission table. This page covers only those two.

02What is the dealer margin on petrol per litre?

Rs 3,144.03 per KL is about Rs 3.14 per litre, plus 0.870% of the product billable price PPAC dealer commission table. The dealer's own costs come out of it.

03How much does a petrol pump earn per day?

This guide gives no daily earnings figure. Commission is the kilolitres sold times the fixed amount, plus the percentage part PPAC dealer commission table. The worked example below uses made-up numbers to show the method.

04Is a petrol pump profitable?

This guide gives no profit figure. The commission is paid before the pump's costs, which the cost page covers.

What a petrol pump costs to start: the money oil companies ask forWhat it costs to start a petrol pump in India: the fees, deposits and bid amounts in the June 2023 dealer guideline, and who pays for what. As on 9 November 2026.

How to open a petrol pump in India: the real route to a dealershipThe real route to a petrol pump dealership in India: the oil company's advertisement, online application, draw of lots or bidding, then approvals. As on 9 November 2026.

GST at a petrol pump: petrol, diesel and other salesWhy petrol and diesel are outside GST, what a petrol pump's other sales pay, when a pump must register for GST, and how input credit works. Not tax advice.

Petrol pump staff and daily running: who does whatWho runs a petrol pump and what each person does in a day: dealer, manager, attendants, cashier, tanker receiver, and the daily checks and records the guidelines ask for.

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