Fuel Retailers Boost Dealer Commissions Amid Price Cuts

State-owned fuel retailers have increased commissions for petrol pump dealers without altering retail petrol and diesel prices. Reduced rates are expected in states like Odisha and Himachal Pradesh due to intra-state freight rationalization, enhancing service standards while benefiting consumers, especially in remote areas.

State-owned fuel retailers announced an increase in commissions paid to petrol pump dealers, although retail prices for petrol and diesel remain unchanged. Benefiting from intra-state freight rationalization, states like Odisha, Chhattisgarh, and Himachal Pradesh are expected to see price reductions.

Indian Oil Corporation has revised dealer margins effective from October 30, 2024, resolving pending litigation without impacting the Retail Selling Price of products. Current dealer commissions are Rs 1,868.14 per kilolitre for petrol and Rs 1,389.35 for diesel, plus a percentage of the product's billable price.

This adjustment is expected to enhance customer service standards and improve conditions for staff employed in retail outlets. Union Oil Minister Hardeep Singh Puri praised the freight rationalization for reducing fuel prices in remote locations, fulfilling consumer and dealer demands.

(With inputs from agencies.)