1 hr ago
Private Fuel Retailers Cap Diesel Sales as Bulk Demand Surges
Diesel sold at petrol pumps is currently much cheaper than diesel sold directly to large industrial customers.
Because of this, some factories, hospitals, hotels and other businesses are buying large amounts from regular petrol stations.
Some businesses are reportedly purchasing 400 to 600 litres at a time.
This has reduced the amount of diesel available at some stations for ordinary drivers.
Jio-bp now limits each customer to 50 litres per day.
Nayara Energy has set limits between 70 and 200 litres, depending on the outlet.
Public-sector fuel companies may introduce similar restrictions.
Jio-bp said its stations are operating and adequately stocked while taking steps to ensure fair access.
The situation is linked to retail prices staying unchanged while international oil costs have increased.
Jio-bp has limited diesel purchases to 50 litres per customer per day at its outlets.
Nayara Energy outlets have imposed transaction limits ranging from 70 litres to 200 litres.
Industrial and other bulk users are buying cheaper retail diesel instead of fuel supplied through dedicated consumer pumps.
The price gap between retail and bulk diesel has reached as much as Rs 40 per litre.
Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum are also expected to impose quantity restrictions.
- Who
- Jio-bp and Nayara Energy, with Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum expected to be affected; industrial and other bulk diesel users are driving the increased demand.
- What
- Private fuel retailers have imposed diesel purchase limits as bulk consumers shift to cheaper retail fuel.
- Where
- At fuel stations in India.
- When
- The restrictions were reported on September 28; retail petrol and diesel prices have remained unchanged since May.
- Why
- A price gap of up to Rs 40 per litre between retail and bulk diesel has encouraged large users to buy from petrol pumps, putting pressure on station inventories and replenishment systems.
Fuel access and supply protection
Lower costs for bulk consumers
Purchase limits
Fuel access and supply protection
Retailers say or indicate that limits can help preserve equitable fuel availability for motorists and transportation users when industrial demand increases.
Lower costs for bulk consumers
Industrial and other bulk consumers are turning to retail stations because retail diesel is substantially cheaper than fuel supplied through dedicated consumer pumps.
Availability of diesel
Fuel access and supply protection
Retailers face finite station storage and replenishment times of at least a couple of days, so large purchases could strain supplies at individual outlets.
Lower costs for bulk consumers
Jio-bp said all its mobility stations are operational and adequately stocked, while the broader fuel supply system may still have fuel available.
Key facts
- Jio-bp limit
- 50 litres per customer per day
- Nayara Energy limits
- Between 70 litres and 200 litres per transaction, depending on the outlet
- Retail-bulk price gap
- As much as Rs 40 per litre
- Reported bulk purchases
- Some industrial users are buying 400 to 600 litres at a time
- Jio-bp network
- 2,227 petrol pumps in India
- Nayara Energy network
- 7,105 outlets
- Total Indian petrol pumps
- 104,069, with public-sector retailers owning the majority
Quotes
Jio-bp spokesperson
Spokesperson for Jio-bp, the Reliance Industries-BP fuel retail joint venture
“All Jio-bp Mobility Stations are operational and adequately stocked to serve our customers.”
theprint.in
Sources
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