Petrol, diesel to be cheaper in far-flung areas, higher fee for dealers | Mint

New Delhi: Prices of petrol and diesel as set to fall in remote parts of some of the states after the public sector oil retailers reduced interstate freight charges.

The oil marketing companies have also agreed to increase the dealer margins or the commission payable to the petrol pumps on the sale of transport fuels, according to a social media post by Union minister for petroleum and natural gas Hardeep Singh Puri.

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The rationalization of interstate freight, applicable for far-flung areas, comes ahead of the polls in Maharashtra and Jharkhand. Prices of fuel sold in remote areas of these two states will be revised after the elections.

Prices would go down in several areas in states like Chhattisgarh, Arunachal Pradesh, Himachal Pradesh and Odisha, the petroleum ministry said. In places like Kunanpally and Kalimela in Odisha’s Malkangiri district, the price of petrol will reduce by ₹4.69 and ₹4.55 per litre, and diesel will become cheaper by ₹4.45 and ₹4.32, respectively, the minister posted on X (formerly Twitter).

Similarly, the prices will reduce by ₹2.09 and ₹2.02, respectively, for petrol and diesel in Chhattisgarh’s Sukma, Puri said to illustrate the changes.

“This reflects PM @narendramodi Ji’s vision to bring even far-flung areas at par with rest of the country in terms of facilities to our citizens, such as the North East Region which has being connected with world class road, air and rail infrastructure,” Puri said.

Revised margins

Higher dealer margin fulfils long-pending demand and “would bring joy and happiness in the lives of petrol pump dealers and nearly 10 lakh staff working at more than 83,000 petrol pumps across the country,” he said.

The dealer margins have been revised effective 30 October, following the resolution of a pending litigation, Indian Oil Corp. Ltd said in a post on X. “This will have no additional impact on the retail selling price of products. This will further strengthen our collective resolve in enhancing customer service standards and the welfare of staff employed in retail outlets.”

“IndianOil has undertaken intrastate rationalisation of freight which will reduce variation of retail selling price of product across various markets within a state, except in geographies where Model Code of Conduct is in place.”

In May, the state-run oil firms had last lowered the prices of petrol and diesel by around ₹2 per litre each.