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Fuel prices set to go down, as OMCs to increase dealer commissions

Fuel station in India with signage reflecting reduced petrol and diesel prices after Oil Marketing Companies' decision to increase dealer commissions

Fuel prices

Fuel prices are set to decrease across various parts of India following a significant decision by Oil Marketing Companies (OMCs) to increase dealer commissions for petrol pump operators. This marks the first adjustment in dealer margins in nearly eight years, coming after the resolution of pending court cases. The revision, effective from October 30, 2024, is expected to reduce petrol and diesel prices in states such as Odisha, Chhattisgarh, and Himachal Pradesh as part of a broader intra-state freight rationalization effort aimed at benefiting consumers in remote locations.

Announcing the revision on the occasion of Dhanteras, Indian Oil Corporation (IOC) noted that the increase in dealer commissions will not impact the retail prices of fuels but will enhance service standards and improve the welfare of staff across its retail outlets. IOC added that the intra-state freight rationalization will minimize price discrepancies across different markets within the same state, except in regions governed by the Model Code of Conduct.

Union Minister for Petroleum and Natural Gas Hardeep Singh Puri praised the OMCs for implementing these changes, which he believes will positively impact approximately 7 crore consumers who visit fuel stations daily. The adjustments will particularly benefit areas with high transportation costs, such as Kunanpally and Kalimela in Odisha, where petrol prices are expected to drop by Rs 4.69 and Rs 4.55 per liter, respectively. In Chhattisgarh’s Sukma, reductions of Rs 2.09 for petrol and Rs 2.02 for diesel have been announced.

The Ministry of Petroleum emphasized that this long-overdue adjustment reflects a commitment to enhancing customer satisfaction and improving conditions for the 10 lakh staff members employed at over 83,000 petrol stations across the nation. Minister Puri also highlighted that these changes will be deferred in election-bound regions, ensuring compliance with electoral regulations.

This decision follows positive discussions between the government and fuel dealer associations, which contributed to resolving longstanding legal issues related to the Marketing Discipline Guidelines (MDGs). The move aims to balance fair compensation for dealers while making fuel more affordable and accessible, especially in rural and remote areas, underscoring the government’s continued focus on consumer welfare and equitable fuel distribution.

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