State-owned fuel retailers on Tuesday hiked the commission they pay to petrol pump dealers but there will be no change in retail petrol and diesel prices. Petrol and diesel prices will fall in states such as Odisha, Chhattisgarh, and Himachal Pradesh due to a rationalization of intra-state freight.
Current Dealer Commission
At present, dealers are paid Rs 1,868.14 per kilolitre, plus 0.875 percent of produce billable price as commission on petrol. The same on diesel is Rs 1389.35 per kg, plus 0.28 percent of the product billable price. This will further enhance customer service standards and the welfare of staff employed in retail outlets.
Measures Taken by OMCs
Indian Oil has undertaken intrastate rationalization of freight which will reduce the variation of the retail selling price of the product across various markets within a state, except in geographies where the Model Code of Conduct is in place.
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Comments by the Oil Ministry
The intra-state freight reduction was hailed by Union Oil Minister Hardeep Singh Puri, who said it will help customers in rural areas by lowering the cost of gasoline and diesel across the nation. “This decision will be implemented later in states and constituencies that are poll-bound,” he said.
Puri gave the instances of Kunanpally and Kalimela in Malkangiri, Odisha, where petrol prices will decrease by Rs 4.69 and Rs 4.55, respectively, and diesel prices will decrease by Rs 4.45 and Rs 4.32 in a post on X. In addition, he highlighted cuts in Bijapur, Bailadila, Kateykalyan, Bacheli, and Dantewada, as well as decreases in fuel prices of Rs 2.09 and diesel rates of Rs 2.02 in Sukma, Chhattisgarh.
Puri went on to say that several regions in Arunachal Pradesh, Himachal Pradesh, Uttarakhand, and Mizoram will also see price reductions. He underlined that without boosting fuel costs, the hike in dealer commissions will improve services for the roughly 7 crore citizens who visit fuel retail shops every day. According to him, meeting this long-standing desire will make fuel pump dealers and the approximately 10 lakh employees who operate at more than 83,000 petrol stations nationwide happy.
Written By: Dipangshu Kundu
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