Oil marketers increase dealer commissions. What does it mean? | Latest News India

Oil marketing companies on Tuesday announced an increase in dealer commissions for pump dealers and will rationalize interstate freight charges to reduce gasoline and diesel prices in several regions across the country.

“Indian Oil is pleased to announce a change in dealer margins effective October 30, 2024, following the resolution of a pending litigation. This change will not impact the retail selling price of the products and will further strengthen our commitment to improving customer service standards and the welfare of employees employed in the retail stores,” Indian Oil Corporation said in a post on X (formerly Twitter).

The oil company said it aims to ensure uniform and affordable petrol and diesel prices across the country by streamlining inter-state freight transport and reduce intra-state price fluctuations, except in areas covered by the Model Code of Conduct.

“Our commitment to permanently provide affordable petrol and diesel across the country is a testament to Nation First’s core value and has borne fruit. #IndianOil has undertaken intra-state rationalization of freight which will reduce the fluctuation in retail selling prices of products in different markets within a state, except in regions where a model code of conduct is in force,” the IOC added in the social media post.

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

“I welcome the OMCs' announcement of increasing the dealer commission payable to petrol pump dealers and the decision to streamline intra-state freight movement to help consumers in remote locations (far from OMCs' petrol and diesel depots), resulting in a “This will lead to a reduction in petrol and diesel prices in several parts of the country. (Decisions in electoral states and constituencies will be implemented later),” Puri wrote on X.

He said the decision reflects Prime Minister Narendra Modi's vision of bringing even the most remote areas at par with the rest of the country in terms of facilities for citizens, including the North East region, which is equipped with “world-class road, air and air transport “Rail infrastructure is connected.”

“The increase in dealer commission will improve service to about 7 million citizens who visit our fuel retail outlets in the country every day without increasing fuel prices,” Puri added.