Petrol, diesel to become cheaper in many places as OMCs announce key moves

The Oil Manufacturing Companies (OMCs) have decided to hike the Dealer Commission which is paid to petrol pump dealers, a move that is expected to benefit consumers residing in the far-flung areas of the country, as the prices of petrol and diesel are likely to register a considerable drop.

“#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 Corp Ltd wrote on X on Tuesday.

“Further, demonstrating the core value of Nation First, our endeavour to provide affordable petrol and diesel across the length and breadth of the country on a sustained basis has come to fruition. #IndianOil has undertaken intrastate rationalisation of freight which will reduce variation of retail selling price of products across various markets within a state, except in geographies where a Model Code of Conduct is in place. Happy festivities!” the Indian Oil added.

Meanwhile, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri welcomed the announcement, saying it is a Dhanteras gift for the people.

“On the auspicious occasion of Dhanteras, a big gift given by oil companies to petrol pump dealers is heartily welcomed! The demand that was going on for 7 years has been fulfilled!” the Union Minister wrote on X.

He added that the consumers will get better services but there will be no increase in the prices of petrol and diesel.

He said that also a major decision by the oil companies to rationalise inter-state freight movements to benefit consumers located in remote locations far from the petrol and diesel depots of oil marketing companies, adding that it will make petrol and diesel cheaper for consumers in many places.

“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),” the Union Minister said.

He added that "this reflects Prime Minister Narendra Modi's vision to bring even far-flung areas at par with the rest of the country in terms of facilities to our citizens, such as the Northeastern region which is connected with world-class road, air and rail infrastructure".

"For example, in Kunanpally & Kalimela in Odisha's Malkangiri, petrol price will reduce by Rs 4.69 & Rs 4.55; and Diesel price will reduce by Rs 4.45 & Rs 4.32 respectively. Similarly, the price will reduce by Rs 2.09 in petrol price and Rs 2.02 in diesel price in Chhattisgarh's Sukma,” the Union Minister said.

He pointed out that the dealer commission increase will better services to approximately 7 crore citizens who visit our fuel retail outlets in the country every day, without increasing fuel prices.

Hardeep Singh Puri further said that the fulfilment of this demand pending for the last 7 years will bring joy and happiness in the lives of petrol pump dealers and nearly 10 lakh staff working at more than 83,000 petrol pumps across the country.

“The way for these historic decisions was paved by positive decisions taken by the Modi government and all the Petrol Dealers Associations who came together in our meetings during the last few months and agreed to withdraw all the pending court cases pertaining to issues related to Marketing Discipline Guidelines (MDGs)," the Union Minister added.