Historic Changes for Petrol Pump Dealers Announced on Dhanteras
New Delhi, India
On the festival of Dhanteras, Oil Marketing Companies (OMCs) announced an increase in the Dealer Commission for petrol pump dealers. This decision, praised by Union Minister for Petroleum and Natural Gas Hardeep Singh Puri as “historic,” aims to benefit consumers in remote areas by reducing petrol and diesel prices.
Indian Oil has revised dealer margins effective October 30, 2024, following a resolved litigation, ensuring no impact on retail prices. The company emphasized its commitment to enhancing customer service and staff welfare.
OMCs have also introduced intrastate freight rationalization to minimize price variations within states, except where the Model Code of Conduct applies. This move aligns with Prime Minister Narendra Modi’s vision to provide equal facilities across the country.
Hardeep Puri highlighted specific price reductions in remote areas like Kunanpally and Kalimela in Odisha, and Sukma in Chhattisgarh. The increase in dealer commission is expected to improve services for millions of daily visitors to fuel outlets without raising fuel prices.
Bharat Petroleum also announced an increase in dealer commission, reinforcing their commitment to affordable fuel and reducing price disparities, especially in remote areas.
Doubts Revealed
Hardeep Singh Puri -: Hardeep Singh Puri is an Indian politician and a member of the Union Cabinet. He is responsible for various government departments, including petroleum and natural gas.
Dhanteras -: Dhanteras is a Hindu festival celebrated in India, marking the beginning of the five-day Diwali festival. It is considered an auspicious day for buying gold, silver, and other valuable items.
Oil Marketing Companies -: Oil Marketing Companies (OMCs) are companies that sell petroleum products like petrol and diesel. In India, major OMCs include Indian Oil, Bharat Petroleum, and Hindustan Petroleum.
Dealer Commission -: Dealer Commission is the amount of money petrol pump dealers earn for selling petrol and diesel. It is a part of the total price you pay when you buy fuel.
Intrastate freight rationalization -: Intrastate freight rationalization means adjusting the cost of transporting goods within a state. This helps in reducing the overall cost of products, like petrol and diesel, especially in remote areas.
Indian Oil and Bharat Petroleum -: Indian Oil and Bharat Petroleum are two of the largest oil companies in India. They supply petrol, diesel, and other fuels to petrol pumps across the country.
PM Modi’s vision -: PM Modi’s vision refers to the goals and plans of India’s Prime Minister, Narendra Modi. He aims to provide equal facilities and services to all parts of India, including remote areas.