Commission Hike To Petrol Pump Dealers Will Decrease In Oil Prices, Know How

On Dhanteras, October 29, Oil Marketing Companies (OMCs) announced an increase in dealer commissions for petrol pump operators, a move that is expected to lead to reduced petrol and diesel prices in various regions. The change includes adjustments in inter-state freight charges to help lower costs for consumers in remote areas far from fuel depots.

Indian Oil Corporation’s Statement

 

Indian Oil Corporation (IOC) expressed that the commission increase, effective from October 30, 2024, aligns with the resolution of ongoing legal disputes. “This adjustment will not affect the retail price of our products but aims to improve customer service standards and support the welfare of staff at retail outlets,” IOC shared in a post on X. Additionally, IOC emphasized its commitment to “affordable petrol and diesel nationwide,” stating that the rationalization of freight charges will reduce retail price differences across various state markets, with the exception of regions under the Model Code of Conduct.

Impact on Petrol and Diesel Prices

 

States such as Odisha, Chhattisgarh, and Himachal Pradesh are likely to see price reductions due to the intra-state freight rationalization, aimed at standardizing fuel prices within each state. The dealer commissions, which currently stand at Rs 1,868.14 per kiloliter plus 0.875% of the billable product price for petrol, and Rs 1,389.35 per kiloliter plus 0.28% for diesel, will vary based on location and sales volume.

Union Oil Minister’s Endorsement

 

Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, welcomed the announcement, highlighting its significance for consumers in remote areas. “I commend the decision to increase dealer commissions and the rationalization of intra-state freight, which will benefit those in remote areas and lead to lower fuel prices in several regions,” Puri shared on X, noting that implementation in poll-bound regions will take place post-elections.

This initiative by OMCs, which aligns with the values of service and accessibility, marks a notable step toward enhancing fuel distribution efficiency and supporting consumers in far-reaching locations.

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