Oil marketing companies on Tuesday announced an increase in dealer commissions for petrol pump dealers and will rationalize inter-state freight charges, aimed at reducing petrol and diesel prices in various regions in the country.

“Indian Oil is pleased to announce a review of dealer margins with effect from October 30, 2024, following the resolution of a pending lawsuit. This change will not impact the retail price of products and will further strengthen our commitment to improving customer service and employee well-being in stores,” Indian Oil Corporation said in a post on X (formerly Twitter).

The oil company said it aims to ensure consistent and affordable petrol and diesel prices across the country through inter-state freight rationalization, which will reduce price variations within states, except in areas covered by the model code of conduct.

“Our commitment to providing affordable petrol and diesel across the length and breadth of the country on a sustainable basis demonstrates Nation First’s core value and has come to fruition. #IndianOil has implemented intra-state rationalization of freight transport, which will reduce variation in retail price of products across markets within a state, except in regions where a Model Code of Conduct is in force,” the IOC added in the social media post .

Petroleum and Natural Gas Minister Hardeep Singh Puri welcomed the announcement by oil marketing companies.

“I welcome the announcement by OMCs to increase the Dealer Commission paid to petrol pump dealers and the decision to implement intra-state freight rationalization for the benefit of consumers located in remote locations (far from the petrol and diesel depots of OMCs), which will result in a decline in petrol and diesel prices in several parts of the country. (Decisions in states and constituencies tied to elections will be implemented later),” Puri wrote on X.

He said the decision reflects Prime Minister Narendra Modi’s vision of bringing even the remotest areas on par with the rest of the country in terms of facilities for the citizens, including the northeastern region, which is connected by ‘road, air and world-class road network. railway infrastructure.’

“The increase in dealer commission will provide better services to around 7 crore citizens who visit our fuel shops in the country every day without increasing fuel prices,” Puri added.