1 day ago
Reliance, Nayara Restrict Fuel Sales as Crude Hits $107
Some private fuel companies in India are limiting how much petrol and diesel each customer can buy.
Nayara Energy set limits of 200 litres for diesel and 30 litres for gasoline.
Reliance BP Mobility also limited diesel sales at some stations.
The companies say demand has increased, especially from industrial users, and they want fuel to remain available to more people.
Worldwide fuel prices have risen because wars and supply problems have disrupted oil trade.
Private companies are selling fuel for less than it costs them to buy or produce.
Some buyers were filling drums and reselling the fuel at higher prices.
Truck drivers said they sometimes need to stop more often because they cannot buy as much diesel.
State-owned fuel stations may receive more customers as a result.
Nayara Energy capped diesel purchases at 200 litres and gasoline purchases at 30 litres at its stations, according to people cited by Bloomberg News.
Reliance BP Mobility restricted diesel sales at some outlets, citing demand conditions and the need to ensure equitable fuel availability.
Global gasoline and diesel prices have risen as supply disruptions linked to the West Asia conflict and Russia-Ukraine war affect production and trade.
Private retailers were reportedly losing about ₹5 per litre on gasoline and ₹23 per litre on diesel as of September 9, with losses likely widening as crude prices increased.
The restrictions aim to limit bulk buying, but they may send more customers to state-owned fuel stations, which account for about 90% of India’s retail fuel sales.
- Who
- Nayara Energy and Reliance BP Mobility restricted fuel sales; Indian state-owned refiners and consumers are affected.
- What
- The private fuel retailers imposed purchase limits or restricted diesel sales while retail fuel prices remained frozen.
- Where
- At Nayara Energy stations nationwide and at some Reliance BP Mobility outlets in India.
- When
- The restrictions were reported as crude prices reached $107; ICRA’s cited loss estimates were as of September 9.
- Why
- The companies cited increased demand and equitable availability, while the measures also seek to prevent bulk buying and fuel resale.
Fuel availability and consumer access
Retailer losses and supply protection
Reason for restrictions
Fuel availability and consumer access
Restrictions may inconvenience drivers and push more consumers toward state-owned fuel stations.
Retailer losses and supply protection
Reliance BP Mobility said the measures respond to prevailing demand conditions and help ensure equitable availability, particularly amid increased industrial and non-transport demand.
Bulk buying
Fuel availability and consumer access
Some consumers, including truckers, reportedly face smaller purchases and more frequent refuelling stops.
Retailer losses and supply protection
People familiar with the matter said the restrictions are primarily intended to stop bulk consumers from accumulating fuel for resale at higher prices.
Domestic sales versus profitability
Fuel availability and consumer access
Keeping pump prices frozen protects consumers from immediate retail price increases.
Retailer losses and supply protection
Private retailers are selling below cost, while rising global prices create an incentive to export fuel rather than sell it domestically; state refiners are also reporting substantial losses.
Key facts
- Crude price
- Crude oil reached $107, according to the report’s framing.
- Nayara diesel limit
- Customers were capped at 200 litres per purchase, according to people cited by Bloomberg News.
- Nayara gasoline limit
- Customers were capped at 30 litres per purchase, according to people cited by Bloomberg News.
- Private retailer losses
- ICRA estimated losses of about ₹5 per litre on gasoline and ₹23 per litre on diesel as of September 9.
- State refiners’ daily loss
- Oil Minister Hardeep Singh Puri said state-owned refiners were losing around ₹5.3 billion, or ₹530 crore, per day.
- State-owned retail share
- Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation together account for around 90% of India’s retail fuel sales.
- Earlier restrictions
- Reliance BP introduced similar restrictions in April during severe disruption to crude flows through the Strait of Hormuz.
Sources
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