7 hrs ago
Petroleum Ministry Moves Against Private Refiners’ Diesel Sales Caps
Two private fuel companies in India have limited how much diesel customers can buy at one time.
Jio-bp set a limit of 50 litres per transaction.
Nayara Energy reportedly set limits between 70 and 200 litres.
The petroleum ministry says fuel companies are not allowed to impose such limits.
It plans to ask the companies to remove the restrictions.
Both companies also export petroleum products.
India’s petrol and diesel use has grown, but LPG sales have fallen this year.
The government also reduced a tax charged on diesel exports.
Petroleum Secretary Neeraj Mittal said the government will ask Jio-bp and Nayara Energy to remove diesel sales restrictions.
Jio-bp has reinstated a 50-litre-per-transaction limit, while Nayara has reportedly capped purchases at 70–200 litres.
The government says no oil marketing company is permitted to restrict fuel sales.
Jio-bp and Nayara are also major petroleum-product exporters, while India’s domestic petrol and diesel demand has increased.
The government lowered the windfall tax on diesel exports from ₹20 to ₹16 per litre, as LPG sales fell nearly 15% during April–September.
- Who
- The Union petroleum ministry, Jio-bp, and Nayara Energy are involved; Petroleum Secretary Neeraj Mittal and Minister Hardeep Singh Puri commented on the issue.
- What
- The government plans to challenge diesel sales caps imposed by private refiners and ask them to roll back the restrictions.
- Where
- The restrictions concern fuel pumps in India.
- When
- The announcement was made on Thursday; the reported sales caps were in place recently, with Jio-bp having previously restricted sales in April.
- Why
- The government says no oil marketing company is permitted to restrict fuel sales. The articles do not state the private refiners’ direct reason for imposing the caps.
Government Position
Private Refiners’ Position
Diesel sales limits
Government Position
The petroleum ministry says no oil marketing company may restrict fuel sales and intends to ask Jio-bp and Nayara Energy to remove their caps.
Private Refiners’ Position
Jio-bp and Nayara Energy have imposed or reportedly imposed transaction limits on diesel purchases; neither company had responded to emailed queries by Thursday evening.
Fuel availability and exports
Government Position
The government remains in contact with private fuel retailers and is addressing restrictions while monitoring domestic demand and petroleum-product exports.
Private Refiners’ Position
Both companies are key petroleum-product exporters, and their operations include supplying overseas markets as well as serving Indian fuel customers.
Key facts
- Jio-bp limit
- 50 litres per transaction
- Nayara Energy limit
- Reportedly 70–200 litres per transaction
- Government position
- Oil marketing companies are not permitted to cap fuel sales
- India’s diesel sales
- 47.89 million tonnes during April–September, up 4.85% year-on-year
- Diesel export tax
- Reduced from ₹20 to ₹16 per litre
- Private fuel pumps
- Jio-bp accounts for about one-fifth of India’s roughly 10,000 private fuel retail pumps
- LPG sales
- Fell nearly 15% to 13.8 million tonnes during April–September
Quotes
Neeraj Mittal
Secretary of India’s Union Ministry of Petroleum and Natural Gas
“Nobody is allowed to put a cap on sales.”
livemint.com
Sources
Related news
Private Fuel Retailers Limit Diesel Sales as Crude Prices Surge
Government Rejects Private Fuel Retailers’ Sales Caps
Reliance, Nayara Restrict Fuel Sales as Crude Hits $107
Private Fuel Retailers Cap Diesel Sales as Bulk Demand Rises
Jio-bp Caps Diesel Sales as Global Supply Pressures Intensify
Jio-bp Limits Diesel Sales as West Asia War Strains Supplies
Essar-Backed Steel Plant Highlights US Investment and Russia Links
Delhi High Court Orders SAP to Restore Nayara Support
Ukraine Drone Strike Damages Major Russian Oil Refinery
