Oil Marketing Companies increase dealer margins, introduce freight rationalisation to benefit customers; Hardeep Puri lauds "historic" decisions

New Delhi [India], October 29 (ANI): In a significant decision coinciding with the festival of Dhanteras, the Oil Marketing Companies (OMCs) on Tuesday announced an increase the Dealer Commission payable to petrol pump dealers.
OMCs have also undertaken intrastate rationalisation of freight which will reduce variation of retail selling price of product across various markets within a state, except in states where Model Code of Conduct is in place.
Union Minister for Petroleum and Natural Gas Hardeep Singh Puri lauded the decisions as "historic" and said the decision to undertake intra-state freight rationalisation to benefit consumers located at remote locations will result in a decrease in petrol and diesel prices in several parts of the country.
He said fulfilment of the pending demand will bring happiness in the lives of Petrol Pump Dealers and nearly 10 lakh staff working at more than 83,000 petrol pumps in the country.
Indian Oil announced a revision in the dealer margins, effective from October 30, 2024, following the resolution of a pending litigation. It said the decision will have no impact on retail selling price of products.
"#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. Wishing our channel partners and their teams continued success as we work towards our shared goals and vision," the company said in a post on X.
"Further, demonstrating the core value of Nation First, our endeavour to provide affordable petrol and diesel across the length and breadth of country on sustained basis has come to fruition. #IndianOil has undertaken intrastate rationalisation of freight which will reduce variation of retail selling price of product across various markets within a state, except in geographies where Model Code of Conduct is in place. Happy festivities!" it added.
Hardeep Puri said that the decision of OMCs reflects Prime Minister Narendra Modi's vision to bring even far flung areas at par with rest of the country in terms of facilities to citizens.
He also cited how prices of diesel and petrol will come down in some remote areas as a result of the decisions.
"I welcome the announcement by OMCs to increase the Dealer Commission payable to petrol pump dealers and 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 and diesel prices in several parts of the country. (Decision in poll bound states and constituencies will be implemented later). This reflects PM @narendramodiji's vision to bring even far flung areas at par with rest of the country in terms of facilities to our citizens, such as the North East Region which has being connected with world class road, air and rail infrastructure," he said on X.
"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, price will reduce by Rs 2.09 in petrol price and
Rs 2.02 in diesel price in Chhattisgarh's Sukma," he added.
Hardeep Puri said increase in dealer commission will improve services to approximately seven crore citizens who visit our fuel retail outlets in the country everyday, without increasing fuel prices.
"The fulfilment of this demand pending for the last seven 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," he said.
He said the way for these "historic decisions" was paved by positive decisions taken by Modi government and all the Petrol Dealers Associations "who came together in our meetings" during last few months and agreed to withdraw all the pending court cases pertaining to issues related to Marketing Discipline Guidelines (MDGs).
Bharat Petroleum also made an announcement about increase in petrol pump dealers' commission.
"BPCL is pleased to announce an increase in Petrol Pump Dealers' Commission, effective tomorrow, for enhancing customer services and staff welfare at no additional cost to consumers. We wish our channel partners continued success in our shared vision of serving our customers with trust, convenience and reliability," the company said in a post on X.
"Additionally, as part of our commitment to affordable fuel, we're introducing intra-state freight rationalisation to reduce price disparities in petrol/diesel, benefiting consumers, especially in remote areas, except in states under Model Code of Conduct. Wishing everyone a joyous festive season ahead!" it added. (ANI)