Modi Govt’s push for inclusive growth: OMCs increase dealer commission and rationalize freight

New Delhi (The Uttam Hindu): In a significant move aimed at benefiting consumers and enhancing the profitability of petrol pump dealers, Oil Marketing Companies (OMCs) have announced an increase in the dealer commission payable to petrol pump owners and undertaken measures to rationalize intra-state freight charges. This decision is expected to lead to a reduction in fuel prices in various parts of the country, especially in remote regions far from OMC depots.

The rationalization of freight charges will bring substantial relief to consumers in distant locations. For example, in Kunanpally and Kalimela of Malkangiri, Odisha, petrol prices will decrease by ₹4.69 and ₹4.55, while diesel prices will drop by ₹4.45 and ₹4.32 respectively. Similarly, Chhattisgarh's Sukma will witness a reduction of ₹2.09 in petrol prices and ₹2.02 in diesel prices. However, in states and constituencies with upcoming elections, the implementation of these changes will be postponed.

Reacting to the announcement, Minister of Petroleum and Natural Gas Hardeep Singh Puri stated, “I welcome the announcement by OMCs to increase the Dealer Commission payable to petrol pump dealers & 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 & diesel prices in several parts of the country.(Decision in poll bound states and constituencies will be implemented later).

The minister also praised the fulfillment of a long-pending demand, highlighting the extensive collaboration between the government and petrol dealers that made this historic move possible. “The Modi government has always prioritized the needs of citizens and businesses alike. This decision will positively impact nearly 10 lakh staff and over 83,000 petrol pumps nationwide, improving services for around seven crore citizens who visit fuel retail outlets every day,” Puri added.

The increase in dealer commissions is expected to lead to better services without increasing fuel prices, benefiting consumers directly. The decision comes after extensive meetings between the Modi government and representatives of all Petrol Dealers Associations. These talks resulted in the withdrawal of all pending court cases related to Marketing Discipline Guidelines (MDGs), clearing the way for these transformative changes.

Puri emphasized the significance of this resolution, stating, “This collective effort addresses a long-standing issue, and we are committed to bringing smiles to the faces of both the dealers and the millions of citizens served by them daily.”