On Tuesday, state-owned fuel retailers announced an increase in the commission paid to petrol pump dealers. However, retail prices for petrol and diesel will remain unchanged. In some states, including Odisha, Chhattisgarh, and Himachal Pradesh, petrol and diesel prices will decrease due to a rationalisation of intra-state freight charges.
Indian Oil Corporation (IOC), the market leader, posted on X, "IndianOil is pleased to announce a revision in dealer margins (effective from October 30, 2024), following the resolution of a pending litigation. This will have no additional impact on the Retail Selling Price of products."
The new dealer commissions will vary based on sales and location, though specific details are not immediately available. Currently, dealers are paid Rs 1,868.14 per kilolitre, plus 0.875 percent of the billable price as a commission for petrol. For diesel, the commission is Rs 1,389.35 per kilolitre, plus 0.28 percent of the product's billable price.
IOC noted that the increase in dealer commissions will enhance customer service standards and improve the welfare of retail outlet staff. The company also highlighted its commitment to providing affordable petrol and diesel nationwide, noting that the rationalisation of intra-state freight will reduce price variations within states, except in areas where the Model Code of Conduct is in effect.
Union Oil Minister Hardeep Singh Puri welcomed the rationalisation initiative, which he said would benefit consumers in remote areas by reducing fuel prices in certain regions. "This decision will be implemented later in poll-bound states and constituencies," he added in a post on X.
As an example, he cited Kunanpally and Kalimela in Odisha’s Malkangiri district, where petrol prices will drop by Rs 4.69 and Rs 4.55, respectively, and diesel by Rs 4.45 and Rs 4.32. In Chhattisgarh’s Sukma district, petrol prices will decrease by Rs 2.09 and diesel by Rs 2.02. Additional reductions will occur in Bijapur, Bailadila, Kateykalyan, Bacheli, and Dantewada in Chhattisgarh, as well as in parts of Arunachal Pradesh, Himachal Pradesh, Uttarakhand, and Mizoram.
Minister Puri emphasized that this increase in dealer commissions will enhance services for the seven crore citizens visiting fuel outlets daily, without raising fuel prices. "This fulfilment of a demand pending for the past seven years will bring joy to petrol pump dealers and nearly 10 lakh staff working at over 83,000 petrol pumps across India," he said.