File image of Congress MP and Lok Sabha LoP Rahul Gandhi. Photo: X/@INCIndia via PTI.

A worker receives a cash payment as he fills fuel into a vehicle at a petrol pump following the hike in petrol and diesel prices, in Nagpur. File
| Photo Credit: ANI

Image used for representation only.
| Photo Credit: Murali Kumar K

State-owned fuel retailers on Tuesday hiked commission paid to petrol pump dealers but there will be no change in retail petrol and diesel prices.

Petrol and diesel prices will fall in Odisha, Chhattisgarh, and Himachal Pradesh due to a rationalisation of intra-state freight.

“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,” Indian Oil Corporation (IOC) said in a post on X.

Dealer commissions would vary according to sale and place. Details were, however, not immediately available. At present, dealers are paid ₹1,868.14 per kilolitre, plus 0.875% of produce billable price as commission on petrol. The same on diesel is ₹1,389.35 per kilolitre, plus 0.28% of product billable price. This will further enhance customer service standards and the welfare of staff employed in retail outlets, IOC said.

“Further, demonstrating the core value of Nation First, our endeavour 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 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,” IOC said.

Union Oil Minister Hardeep Singh Puri welcomed the intra-state freight rationalisation that he said will “benefit consumers located at remote locations (far from petrol and diesel depots of oil marketing companies) which will result in a decrease in petrol and diesel prices in several parts of the country. (Decision in poll-bound States and constituencies will be implemented later)“.

In a post on X, he cited the example of Kunanpally and Kalimela in Odisha’s Malkangiri where petrol price will reduce ₹4.69 and ₹4.55, respectively; and diesel rates will be cut ₹4.45 and ₹4.32, respectively. Similarly, petrol prices will reduce by ₹2.09 and ₹2.02 in diesel in Chhattisgarh’s Sukma. Rates will also be cut in Bijapur, Bailadila, Kateykalyan, Bacheli, and Dantewada of the State. Similarly, prices will also be cut in several places in Arunachal Pradesh, Himachal Pradesh, Uttarakhand, and Mizoram.

“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,” he said. “The fulfilment of this demand pending for the last seven years will 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.”

Representational file image
| Photo Credit: Bhagya Prakash K

India’s petrol and diesel consumption fell in the first half of July as fury of monsoon flipped travel plans and reduced the demand in the agricultural sector, preliminary industry data showed.

Demand for diesel, the most consumed fuel in the country accounting for about two-fifths of the demand, fell 15% to 2.96 million tonnes in July 1- July 15, compared to the year-ago period.

Consumption of diesel, which had soared 6.7% and 9.3% in April and May, respectively, as agriculture demand picked up and cars yanked up air-conditioning to beat the summer heat, has tapered since the second half of June after the monsoon set in.

Month-on-month sales fell almost 20%, when compared with 3.68 million tonnes of diesel consumed in June 1- June15.

Petrol sales dropped 10.5% to 1.25 million tonnes during the first half of July 2023, when compared with the same period last year. Sales were down 10.8% month-on-month, the data showed.

Both the manufacturing and services sectors in India have been in expansion territory to support oil demand for over one year.

This led to petrol and diesel sales rising since the second half of March. But the arrival of monsoon has cooled temperatures and reduced demand for running diesel gensets to irrigate fields as well as cut down consumption in tractors and trucks.

For the year, India’s oil demand is forecast at 0.2 million barrels per day year-on-year, according to oil cartel OPEC’s monthly oil bulletin.

Consumption of petrol during July 1 to 15 was 12.5% more than COVID-marred July 2021 and 16.6% more than pre-pandemic July 1-15, 2019.

Diesel consumption was up 10.1% over July 1-15, 2021 but 1.1% less than in the first half of July 2019.

With the continuing rise in passenger traffic at airports, jet fuel (ATF) demand rose 6.1% to 301,800 tonnes during July 1 to 15, as compared to the same period last year.

It was more than double that of the first half of July 2021, but 5.9% lower than pre-COVID July 1-15, 2019.

Month-on-month jet fuel sales fell 6.7% when compared with 323,500 tonnes in June 1-15, 2023.

The country’s oil demand during the last few months was supported by strong industrial activity, industry officials said.

Cooking gas LPG sales were down 6.3% year-on-year to 1.27 million tonnes in July 1-15. LPG consumption was 6 per cent higher than in July 2021 and 3.7 per cent more than pre-COVID July 1-15, 2019.

Month-on-month, LPG demand was up 3.8% compared to 1.22 million tonnes of LPG consumption during the first half of June, the data showed.