Mumbai, Oct. 1 -- Private fuel retailers Jio-bp and Nayara Energy have capped diesel purchases at their outlets as industrial and other bulk consumers increasingly turn to petrol pumps for cheaper retail fuel. The move has placed pressure on supplies and raised concerns about the availability of diesel for regular customers.
Jio-bp outlets have limited diesel purchases to 50 litres per customer per day. Nayara Energy outlets have imposed limits ranging from 70 litres to 200 litres, according to people aware of the matter. Public-sector retailers Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation are also likely to introduce restrictions.
Retail petrol and diesel prices have remained unchanged since May, even as international crude prices have risen to around $108 a barrel. Prices for bulk consumers have moved more closely with global rates, creating a gap of up to Rs. 40 a litre between bulk supplies and fuel sold at retail outlets.
Factories, telecom companies, hotels, malls, data centres and hospitals are among the bulk users increasingly purchasing between 400 and 600 litres from petrol pumps. The higher volumes are putting pressure on station inventories, while replenishment can take at least a couple of days.
Jio-bp operates 2,227 outlets and Nayara Energy operates 7,105. Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation operate 43,289, 25,587 and 25,238 outlets, respectively.
Jio-bp said its stations were adequately stocked and that the measures were intended to ensure equitable fuel availability amid prevailing demand conditions. The company said the steps were particularly relevant to demand from industrial and non-transport users, as bulk consumers continue to seek the lower prices available at retail outlets.
Published by HT Digital Content Services with permission from Construction World.