Indian Oil Corp announces revision in dealer margins effective from Oct 30; details here

The OMCs have also implemented intrastate freight rationalization, which will help reduce retail price disparities within states, except in regions under the Model Code of Conduct.

Livemint
Published29 Oct 2024, 09:44 PM IST
Indian Oil Corp announces revision in dealer margins effective from Oct 30.
Indian Oil Corp announces revision in dealer margins effective from Oct 30.(MINT_PRINT)

In a significant move coinciding with the Dhanteras festival, Oil Marketing Companies (OMCs) announced on Tuesday an increase in the Dealer Commission for petrol pump operators.

The OMCs have also implemented intrastate freight rationalization, which will help reduce retail price disparities within states, except in regions under the Model Code of Conduct.

Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, praised the decisions as "historic." He noted that intrastate freight adjustments will benefit consumers in remote areas by lowering petrol and diesel prices in several regions across the country.

Also Read | OMCs report double-digit fall in Q2 net profit on weak refining margins

The Minister highlighted that fulfilling this longstanding demand will bring relief to petrol pump dealers and nearly one million staff members working at over 83,000 petrol pumps nationwide.

Following the resolution of a pending legal matter, Indian Oil announced revised dealer margins, effective October 30, 2024. The change will not impact the retail prices 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 stated that the decision by oil marketing companies aligns with Prime Minister Narendra Modi's vision to provide equal facilities to citizens, even in remote areas, bringing them on par with the rest of the country. He also noted that this move will lead to a reduction in diesel and petrol prices in some of these distant regions.

"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 4.69 & 4.55; and diesel price will reduce by 4.45 & 4.32 respectively. Similarly, price will reduce by 2.09 in petrol price and 2.02 in diesel price in Chhattisgarh's Sukma," he added.

Hardeep Puri stated that raising dealer commissions will enhance services for the nearly seven crore citizens who visit fuel retail outlets across the country daily, without impacting 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 stated that these "historic decisions" were made possible by positive steps taken by the Modi government and the cooperation of all Petrol Dealers Associations, who participated in recent meetings and agreed to withdraw all pending court cases related to the Marketing Discipline Guidelines (MDGs).

Also Read | Lower crude price gains may be capped for OMCs

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

"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.

Catch all the Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

MoreLess
First Published:29 Oct 2024, 09:44 PM IST
Business NewsCompaniesNewsIndian Oil Corp announces revision in dealer margins effective from Oct 30; details here

Get Instant Loan up to ₹10 Lakh!

  • Employment Type

    Most Active Stocks

    Tata Steel share price

    147.55
    03:59 PM | 8 NOV 2024
    -3.35 (-2.22%)

    Tata Motors share price

    805.70
    03:58 PM | 8 NOV 2024
    -14.1 (-1.72%)

    Indian Hotels Company share price

    733.05
    03:51 PM | 8 NOV 2024
    49.45 (7.23%)

    Ashok Leyland share price

    222.00
    03:59 PM | 8 NOV 2024
    6.2 (2.87%)
    More Active Stocks

    Market Snapshot

    • Top Gainers
    • Top Losers
    • 52 Week High

    Page Industries share price

    47,987.80
    03:53 PM | 8 NOV 2024
    2882.3 (6.39%)

    National Aluminium Company share price

    238.70
    03:57 PM | 8 NOV 2024
    0.15 (0.06%)

    Federal Bank share price

    206.05
    03:29 PM | 8 NOV 2024
    0.05 (0.02%)

    Apollo Hospitals Enterprise share price

    7,409.05
    03:29 PM | 8 NOV 2024
    -15.55 (-0.21%)
    More from 52 Week High

    Aarti Industries share price

    474.75
    03:59 PM | 8 NOV 2024
    -40.3 (-7.82%)

    Signatureglobal India share price

    1,274.45
    03:29 PM | 8 NOV 2024
    -107.95 (-7.81%)

    Great Eastern Shipping Company share price

    1,200.50
    03:29 PM | 8 NOV 2024
    -90.45 (-7.01%)

    GMM Pfaudler share price

    1,282.90
    03:29 PM | 8 NOV 2024
    -92 (-6.69%)
    More from Top Losers

    Indian Hotels Company share price

    733.05
    03:51 PM | 8 NOV 2024
    49.45 (7.23%)

    Vijaya Diagnostic Centre share price

    1,098.90
    03:29 PM | 8 NOV 2024
    71.45 (6.95%)

    Motilal Oswal Financial Services share price

    996.05
    03:59 PM | 8 NOV 2024
    61.85 (6.62%)

    One 97 Communications share price

    848.15
    03:58 PM | 8 NOV 2024
    52.35 (6.58%)
    More from Top Gainers

    Recommended For You

      More Recommendations

      Gold Prices

      • 24K
      • 22K
      Bangalore
      79,485.00910.00
      Chennai
      79,491.00910.00
      Delhi
      79,643.00910.00
      Kolkata
      79,495.00910.00

      Fuel Price

      • Petrol
      • Diesel
      Bangalore
      102.92/L0.00
      Chennai
      100.80/L0.00
      Kolkata
      104.95/L0.00
      New Delhi
      94.77/L0.00

      Popular in Companies

        HomeMarketsloanPremiumMint Shorts