2 days ago
Government Orders Fuel Retailers To Remove Petrol, Diesel Sales Caps
The government says fuel stations must not limit how much petrol or diesel people can buy.
Some private companies had set limits because selling fuel was causing them losses.
Jio-bp reportedly allowed each customer to buy up to 50 litres of diesel per day.
Nayara Energy reportedly set limits between 70 and 200 litres.
Petroleum Secretary Neeraj Mittal said the government would tell these companies to stop the limits.
The government says Indian consumers have not faced fuel shortages or higher prices during the West Asia crisis.
Officials also want India to use more natural gas instead of relying on only one fuel.
A new program aims to connect five million more homes to piped natural gas.
Petroleum Secretary Neeraj Mittal said private fuel retailers cannot cap petrol or diesel sales.
Jio-bp outlets reportedly limited diesel purchases to 50 litres per customer daily.
Nayara Energy outlets reportedly imposed limits ranging from 70 to 200 litres.
Retailers introduced limits to reduce losses from selling fuel below market prices.
The government launched National PNG Drive 3.0, targeting five million new domestic connections.
- Who
- The central government, Petroleum Secretary Neeraj Mittal, private fuel retailers, and Union Petroleum Minister Hardeep Singh Puri.
- What
- The government said private fuel retailers must stop limiting petrol and diesel sales, while also promoting wider natural-gas use.
- Where
- Across India, at private fuel retail outlets and domestic piped-natural-gas networks.
- When
- The statements and program launch were reported on Thursday during the ongoing West Asia crisis.
- Why
- Retailers imposed limits to reduce losses from below-market fuel prices; the government wants uninterrupted consumer access and a more diversified energy mix.
Government Position
Retailer Rationale
Fuel sales limits
Government Position
The government says nobody is allowed to cap petrol or diesel sales and that restrictions are unacceptable.
Retailer Rationale
Reliance Industries and Nayara Energy reportedly restricted sales to limit losses from selling fuel below market rates.
Energy-price pressures
Government Position
Officials say Indian consumers have been insulated from the extraordinary rise in energy prices and have not faced shortages.
Retailer Rationale
Oil-marketing companies are incurring losses on petrol, diesel, and liquefied petroleum gas sales amid the West Asia crisis.
Key facts
- Diesel limit at Jio-bp
- 50 litres per customer per day
- Reported Nayara limits
- 70 to 200 litres per customer
- National PNG Drive 3.0 target
- Five million new domestic piped-natural-gas connections
- Natural gas target
- 15 per cent of India’s overall energy basket
- PNG Drive 2.0 daily connections
- Average daily connections rose 43 per cent to 6,690
- PNG Drive 2.0 billed consumers
- Daily additions rose 166 per cent to 7,392
- Compressed biogas plan
- Increase output tenfold under the GOBARdhan scheme
Quotes
Neeraj Mittal
India’s Petroleum Secretary
“Nobody is allowed to put a cap on sales. They are doing it, and we will take it up. We will tell them it is not acceptable. Instructions had been issued earlier as well; the same thing applies even today. There is no change in the government's view.”
m.rediff.com
“We need to learn from the recent crisis. India has escaped unscathed in many ways from this crisis. We did not see prices go up, did not see shortages. We did not see any household complaining that their house was out of energy.”
m.rediff.com
Sources
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