Indian Oil Corporation announced a revision in dealer margin from October 30. Details here


In a major move coinciding with the Dhanteras festival, oil marketing companies (OMCs) on Tuesday announced a hike in dealer commission for petrol pump operators.

OMCs have also implemented intra-state freight rationalization, which will help reduce retail price disparities within states, except in areas covered by the Model Code of Conduct.

Union Minister for Petroleum and Natural Gas Hardeep Singh Puri termed the decisions as “historic”. He noted that the interstate freight adjustment will benefit consumers in remote areas by reducing the prices of petrol and diesel in many regions across the country.

Also read this | OMCs report double-digit decline in Q2 net profit on weaker refining margins.

The minister highlighted that meeting this long-standing demand would provide relief to petrol pump dealers and around one million staff working at over 83,000 petrol pumps across the country.

After the resolution of the pending legal matter, Indian Oil announced the revised dealer margin, which will be effective from October 30, 2024. The change will not affect the retail prices of the products.

“Indian Oil is pleased to announce the revision of dealer margin (effective from 30 October 2024) following the resolution of a pending litigation. This will not have any additional impact on the retail selling price of the product. Our collective commitment to enhancing the quality of customer service and the well-being of our retail outlet staff will be further strengthened as we pursue our shared goals and Work for the vision,” the company said in a post on X.

“Furthermore, reflecting the core value of NationFirst, our endeavor to provide affordable petrol and diesel across the length of the country on a consistent basis has paid off. #IndianOil has launched intra-state rationalization of freight which The difference in the retail sale price of the product in different markets within the state will be reduced, except in those geographies where the model code of conduct is in place, he added.

Hardeep Puri said the decision of the oil marketing companies is in line with Prime Minister Narendra Modi's vision of providing equal facilities to citizens, even in remote areas, to bring them at par with the rest of the country. He also noted that the move would lead to a reduction in diesel and petrol prices in some of these remote areas.

“I welcome OMCs' announcement to increase dealer commission payable to petrol pump dealers and intra-state freight rationalization decision to benefit customers located at remote locations (away from OMC's petrol and diesel depots) This will result in a reduction in the prices of petrol and diesel in many parts of the country (the decision of the constituencies will be implemented later), such as the North-East region, which is a world-class road. Linked to air and rail infrastructure,” he said at X.

“For example, the price of petrol will be reduced during Kannanpally and Kali Mela in Odisha's Malkangiri. 4.69 and 4.55; And the price of diesel will come down. 4.45 and 4.32 respectively. Similarly, the prices will decrease. 2.09 and in the price of petrol 2.02 in diesel price in Chhattisgarh's Sukma, he added.

Hardeep Puri said that increasing the dealer commission would increase the service to about seven crore citizens who visit fuel retail outlets across the country every day, without affecting fuel prices.

“Fulfillment of this demand, which has been pending for the past seven years, will bring joy and happiness to the lives of petrol pump dealers and nearly one million staff working at over 83,000 petrol pumps across the country,” he said.

He said these “historic decisions” were made possible by the positive steps taken by the Modi government and the cooperation of all petrol dealers' associations, which participated in recent meetings and returned all pending court cases related to the Marketing Discipline Guidelines (MDGs). Agreed to take. .

Also read this | For OMCs, the decline in crude oil prices may be limited.

Additionally, Bharat Petroleum announced an increase in the commission of petrol pump dealers.

“BPCL is pleased to announce an increase in petrol pump dealers' commission, effective tomorrow, at no additional cost to consumers to enhance customer services and staff welfare. We want Our channel partners continue to succeed in our shared vision of serving our customers with confidence, convenience and reliability,” the company said in a post on X.

“Furthermore, as part of our commitment to affordable fuel, we are introducing intra-state freight rationalization to reduce the petrol/diesel price disparity, benefiting consumers, esp. But in remote areas, except in states under the Model Code of Conduct. Happy festive season ahead!” he added.

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