Oil Companies Raise Dealer Commissions While Keeping Petrol and Diesel Prices Stable

State-owned fuel companies have increased the commission paid to petrol pump dealers, but retail prices for petrol and diesel will remain unchanged. In some states like Odisha, Chhattisgarh, and Himachal Pradesh, prices will decrease due to adjustments in intra-state freight charges. This change aims to benefit consumers without affecting the retail selling price of these fuels.

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Indian Oil Corporation (IOC) announced that dealer margins have been revised from 30th October 2024, following a legal resolution. This revision will not impact the retail prices of petrol and diesel. Dealer commissions will vary based on sales and location, though specific details are not yet available. Currently, dealers earn Rs 1,868.14 per kilolitre plus 0.875% of the billable price for petrol and Rs 1,389.35 per kilolitre plus 0.28% for diesel.

Dealer Commission and Customer Service

The increase in dealer commissions is expected to improve customer service standards and enhance the welfare of staff at retail outlets. IOC emphasised its commitment to providing affordable fuel nationwide by rationalising intra-state freight charges. This move aims to reduce price variations within states, except where the Model Code of Conduct applies.

Union Oil Minister Hardeep Singh Puri praised the freight rationalisation, highlighting its benefits for consumers in remote areas far from oil depots. This adjustment will lead to lower petrol and diesel prices in various regions across India. However, changes in poll-bound states and constituencies will be implemented later.

In Odisha's Malkangiri district, petrol prices will drop by Rs 4.69 in Kunanpally and Rs 4.55 in Kalimela, while diesel rates will decrease by Rs 4.45 and Rs 4.32 respectively. In Chhattisgarh's Sukma district, petrol prices will fall by Rs 2.09 and diesel by Rs 2.02. Similar reductions are expected in Bijapur, Bailadila, Kateykalyan, Bacheli, and Dantewada.

Impact on Fuel Retail Outlets

Price cuts are also anticipated in parts of Arunachal Pradesh, Himachal Pradesh, Uttarakhand, and Mizoram. The increased dealer commission is set to enhance services for around 7 crore citizens visiting fuel outlets daily without raising fuel prices.

This long-awaited demand has been pending for seven years and is expected to bring satisfaction to petrol pump dealers and nearly 10 lakh staff working at over 83,000 petrol stations nationwide. The changes reflect a significant step towards improving conditions for both dealers and consumers across the country.