Indian Oil Corporation dealer margin increase

On October 29, 2024, during the Dhanteras festival, Oil Marketing Companies (OMCs), including Indian Oil Corporation, announced an increase in dealer commissions for petrol pump operators, effective October 30, 2024. The change, following the resolution of a legal matter, will not affect the retail prices of petrol and diesel products. This revision is designed to enhance customer service standards and improve employee welfare at retail outlets, as confirmed by Indian Oil Corporation.

Bharat Petroleum also assured that the increase in dealer commissions would not raise costs for consumers.

Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, praised the decision as “historic,” highlighting that it fulfills a longstanding demand benefiting petrol pump dealers and nearly one million staff members across 83,000 pumps in India.

OMCs also announced the implementation of intrastate freight rationalization to address price disparities within states, providing a cost reduction benefit to consumers, especially those in remote areas.

Minister Puri attributed these changes to proactive steps by the Modi government, along with cooperation from Petrol Dealers Associations, who agreed to withdraw pending court cases related to Marketing Discipline Guidelines (MDGs).