Petrol and diesel prices will fall in remote areas as OMCs rationalize inter-state transport, government says

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Union Petroleum Minister Hardeep Singh Puri on Tuesday (October 29, 2024) welcomed the decision of state-owned oil marketing companies (OMCs) to increase dealer commissions for petrol pump owners. In addition, Puri lauded the intra-state transport rationalization which he said would “benefit consumers located in remote locations (away from petrol and diesel depots of oil marketing companies) and this will lead to reduction in petrol and diesel prices in various parts of the country”. “

OMCs have increased the commission paid to petrol pump dealers but this will not affect retail petrol and diesel prices. Instead, petrol and diesel prices will fall in states like Odisha, Chhattisgarh and Himachal Pradesh due to rationalization of intra-state freights.

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

Dealer commissions will vary based on sales volume and location; We will follow up with more details.

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

According to Puri, the increased dealer commission will improve service standards and benefit the welfare of staff at retail outlets. Giving examples of X, Puri mentioned Kunanpally and Kalimela in Malkangiri district of Odisha; Here, petrol prices will drop by ₹4.69 and ₹4.55 respectively and diesel prices will also drop by ₹4.45 and ₹4.32.

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

Puri said, “The dealer commission increase will provide better service to approximately 7 million citizens who visit our fuel retail outlets every day, without increasing fuel prices.” he said.

Fulfillment of this demand, which has been pending for the last 7 years, will bring joy and happiness to the lives of fuel pump dealers and around 10 lakh staff working in more than 83,000 fuel pumps across the country.”

With inputs from PTI