In a move that brings good news for petrol pump dealers, the government has announced an increase in the commission provided to dealers of government-owned oil companies. Effective from October 30, 2024, the commission for petrol will rise by Rs. 0.65 per liter, while the commission for diesel will increase by Rs. 0.44 per liter. This decision marks the first commission increase in almost eight years, providing much-needed relief and support to petrol pump dealers across the country.
Impact on Retail Prices
It’s important to note that this commission increase will not affect the retail prices of petrol and diesel. The Indian Oil Corporation (IOC) made the announcement via social media platform X, expressing satisfaction in revising the dealers’ margins following the resolution of pending litigation regarding dealer commissions. Alongside IOC, Bharat Petroleum (BPPL) and Hindustan Petroleum Corporation Limited (HPCL) have also confirmed similar commission increases for their dealers.
Reasons Behind the Increase
The decision to enhance commissions comes in the wake of a rationalization of interstate freight charges, aimed at reducing discrepancies in retail pricing across different regions. This rationalization is expected to help maintain consistent pricing, making fuel more accessible in various parts of the state while particularly benefitting consumers in remote areas.
Minister Hardeep Singh Puri praised the oil companies’ decision, highlighting the positive impact of intra-state freight rationalization on consumers, particularly in less accessible locations. He mentioned that some areas may even see a decrease in petrol and diesel prices as a result of these changes.
Regional Price Adjustments
Specific regions, such as Koonan Pally and Kalimela in Malkangiri, Odisha, will experience reductions in fuel prices. Petrol prices in these areas will decrease from Rs. 4.69 to Rs. 4.55 per liter, while diesel prices will drop from Rs. 4.45 to Rs. 4.32 per liter. Similar reductions are expected in parts of Chhattisgarh, Arunachal Pradesh, Uttarakhand, and Mizoram.
Benefits to Dealers and Consumers
This increase in dealers’ commissions is expected to improve customer service standards and enhance the welfare of retail outlet staff. With approximately 7 crore citizens visiting fuel outlets daily, the increase in commissions will allow petrol pump dealers, operating around 83,000 petrol pumps nationwide, to provide better services without passing on additional costs to consumers. Additionally, the change will benefit around one million staff members employed at these outlets.
Conclusion
The government’s decision to raise commissions for petrol pump dealers not only supports the livelihoods of those operating in the fuel retail sector but also aims to enhance the overall service experience for consumers. With these adjustments, the oil companies hope to continue fostering a reliable and efficient fuel distribution network across the country.
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