Union Oil Minister Hardeep Singh Puri on Tuesday (October 29, 2024) welcomed the decision by state-owned oil marketing companies (OMCs) to increase dealer commissions for petrol pump owners. Additionally, Puri lauded the intra-state freight rationalisation, which he said would “benefit consumers located at remote locations (far from petrol and diesel depots of oil marketing companies), resulting in a decrease in petrol and diesel prices in several parts of the country.”

धनतेरस के शुभ अवसर पर तेल कंपनियों द्वारा पेट्रोल पंप डीलरों को दी गई बड़ी सौगात का हार्दिक स्वागत!

7 वर्षों से चली आ रही डिमांड हुई पूरी!

उपभोकताओं को मिलेंगी बेहतर सेवाएं पर पेट्रोल और डीज़ल के दामों में कोई बढ़ोतरी नहीं।

तेल कंपनियों द्वारा दूरदराज़ स्थानों (तेल विपणन… https://t.co/SbKtxzYZGR pic.twitter.com/oZDl7ulljF

— Hardeep Singh Puri (@HardeepSPuri) October 29, 2024

OMCs have hiked the commission paid to petrol pump dealers, though this will not affect retail petrol and diesel prices. Instead, due to the rationalisation of intra-state freight, petrol and diesel prices will decrease in states such as Odisha, Chhattisgarh, and Himachal Pradesh.

“IndianOil is pleased to announce a revision in the dealer margins (effective from 30th October 2024), following the resolution of pending litigation. This will have no additional impact on the Retail Selling Price of products,” the Indian Oil Corporation (IOC) posted on X (formerly Twitter).

#IndianOil is pleased to announce a revision in the dealer margins (effective from 30th October 2024), following the resolution of a pending litigation. This will have no additional impact on the Retail Selling Price of products. This will further strengthen our collective…

— Indian Oil Corp Ltd (@IndianOilcl) October 29, 2024

Dealer commissions will vary according to sales volume and location, with more details to follow.

Currently, dealers are paid ₹1,868.14 per kilolitre, plus 0.875% of the product billable price as commission on petrol. For diesel, the rate is ₹1,389.35 per kilolitre, plus 0.28% of the product billable price.

According to Puri, the increased dealer commission will enhance service standards and benefit the welfare of staff at retail outlets. Citing examples on X, Puri mentioned Kunanpally and Kalimela in Odisha’s Malkangiri district, where petrol prices will reduce by ₹4.69 and ₹4.55, respectively, and diesel rates will be cut by ₹4.45 and ₹4.32.

In Chhattisgarh’s Sukma, petrol prices will drop by ₹2.09 and diesel by ₹2.02 per litre. Additional rate cuts are expected in Bijapur, Bailadila, Kateykalyan, Bacheli, and Dantewada in Chhattisgarh, as well as across locations in Arunachal Pradesh, Himachal Pradesh, Uttarakhand, and Mizoram.

Puri noted, “The dealer commission increase will provide better services to approximately 7 crore citizens who visit our fuel retail outlets daily, without increasing fuel prices.”

He added, “The fulfillment of this demand, pending for the last 7 years, will bring joy and happiness to the lives of petrol pump dealers and nearly 10 lakh staff working at more than 83,000 petrol pumps across the country.”

With inputs from PTI