Mumbai, Oct. 8 -- India will ask private fuel retailers to stop rationing diesel and gasoline sales, Oil Secretary Neeraj Mittal said on Thursday. He said the government's position was that no retailer was permitted to cap fuel sales, and the companies would be told that such restrictions were unacceptable.
Mittal said the government had already issued instructions to fuel retailers on the matter. He added that its position remained unchanged, indicating that private operators were expected to maintain fuel availability at their service stations.
Reliance Industries and Nayara Energy have restricted diesel and gasoline sales at their service stations, according to a Reuters report. The companies have taken the step to limit losses arising from the sale of fuels at prices below market rates.
The restrictions come as India continues to hold retail diesel and gasoline prices steady despite a rise in global oil prices. The country has not revised retail rates for either fuel since May, according to the report.
State-run fuel retailers are losing about Rs. 50 per litre on diesel sales, company officials said. The reported losses reflect the difference between current retail prices and the higher costs associated with obtaining fuel in an environment of rising international oil prices.
Published by HT Digital Content Services with permission from Construction World.