Oil PSU stocks to get focus as unit decides to hike commissions of dealers

The Shares of oil marketing companies (OMCs) such as Indian Oil, Hindustan Petroleum Corporation, and Bharat Petroleum Corporation (BPCL) will be in focus on Wednesday, October 30, as the companies on Tuesday decided to hike the Dealer Commission, which is paid to petrol pump dealers.

This would likely benefit consumers residing in the far-flung areas of the country, as the prices of petrol and diesel are likely to register a considerable drop. However, there will be no change in retail petrol and diesel prices.

“IndianOil is pleased to announce a revision in the dealer margins (effective from 30th October 2024), following the resolution of a pending litigation. 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,” Indian Oil Corp Ltd wrote on X on Tuesday.

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At present, dealers are paid Rs 1,868.14 per kilolitre, plus 0.875% of the produce billable price as commission on petrol. The same on diesel is Rs 1,389.35 per kilolitre, plus 0.28% of the product billable price. This will further enhance customer service standards and the welfare of staff employed in retail outlets, it said.

“Further, demonstrating the core value of Nation First, our endeavor to provide affordable petrol and diesel across the length and breadth of the country on a sustained basis has come to fruition. #IndianOil has undertaken intrastate rationalization of freight, which will reduce variation of the retail selling price of products across various markets within a state, except in geographies where a Model Code of Conduct is in place. Happy festivities!” Indian Oil added.

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Meanwhile, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri welcomed the announcement, saying it is a Dhanteras gift for the people.

"The dealer commission increase will provide better services to approximately 7 crore citizens who visit our fuel retail outlets in the country every day, without increasing fuel prices," the minister added.  "This revision comes after seven years and eight months. We welcome it," he said, adding that the dealers have withdrawn a legal case they had filed against the oil companies over oil companies enforcing marketing discipline guidelines.

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