Oil Marketing Companies Hike Dealer Commissions: What It Means For Fuel Prices

Oil marketing companies on Tuesday announced a hike in dealer commissions for petrol pump operators and plans to adjust inter-state freight charges, aiming to reduce petrol and diesel prices in several regions nationwide.

“#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 resolve in enhancing customer service standards and the welfare of staff employed in retail outlets,” Indian Oil Corporation said in a post on X (formerly Twitter).

The oil company stated that it aims to ensure stable and affordable petrol and diesel prices nationwide by implementing inter-state freight rationalisation, helping to reduce price disparities within states, except in regions where the model code of conduct applies.

“Further, Demonstrating the core value of Nation First, our endeavour to provide affordable petrol and diesel across the length and breadth of country on sustained basis has come to fruition. #IndianOil has undertaken intrastate rationalisation of freight which will reduce variation of retail selling price of product across various markets within a state, except in geographies where Model Code of Conduct is in place,” IOC shared in a social media post.

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Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, welcomed the recent announcement by oil marketing companies.

“I welcome the announcement by OMCs to increase the Dealer Commission payable to petrol pump dealers & the decision to undertake intra-state freight rationalisation to benefit consumers located at remote locations (far from Petrol and Diesel depots of OMCs) which will result in a decrease in petrol & diesel prices in several parts of the country. (Decision in poll bound states and constituencies will be implemented later),” Puri shared on X.

He noted that the decision aligns with Prime Minister Narendra Modi’s vision of bringing even the most remote areas, including the Northeast, on par with the rest of the country in terms of citizen facilities, with these regions now connected by “world-class road, air, and rail infrastructure.”

“The dealer commission increase will better services to approximately 7 crore citizens who visit our fuel retail outlets in the country everyday, without increasing fuel prices,” added Puri.

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