Fuel price drop for remote areas as dealer commissions rise; inter-state freight adjustments to benefit consumers

India’s state-run oil marketing companies (OMCs) have increased the commissions for petrol pump dealers and implemented a “freight rationalisation” plan to reduce fuel prices in far-flung areas.

Fuel Minister Hardeep Singh Puri announced that these moves would help bring fuel prices down in parts of Odisha, Chhattisgarh, and Himachal Pradesh, where customers often face higher costs due to distance.  

The new freight policy, which adjusts transportation costs within states, aims to benefit consumers located far from fuel depots. Puri noted that in areas like Odisha’s Malkangiri, petrol prices will drop by Rs 4.69 per litre in Kunanpally and by Rs 4.55 in Kalimela, while diesel prices will fall by Rs 4.45 and Rs 4.32, respectively. Similarly, petrol prices in Sukma, Chhattisgarh, are set to reduce by Rs 2.09, with diesel prices falling by Rs 2.02.  

Indian Oil Corporation (IOC) highlighted that this freight rationalisation will even out fuel prices across states, though it will not apply in poll-bound areas where the Model Code of Conduct is active. The commission hike, effective from October 30, 2024, came after a pending court case was resolved, ensuring better services without affecting retail prices. 

With over 83,000 fuel stations nationwide, the revised commissions and price adjustments are expected to enhance service quality for around 7 crore customers daily, benefitting pump dealers and their 10 lakh employees across India.