New Delhi, May 27 -- Industrial consumers, including factories and fleet operators, appear to have found an arbitrage opportunity in the government's consumer-friendly retail fuel pricing, which is intended to benefit households and small users.

The Union ministry of petroleum and natural gas on Wednesday raised concerns that industrial consumers are buying cheaper retail fuel at pumps operated by state-run oil-marketing companies (OMCs), instead of costlier bulk fuel, undermining the government's efforts to cushion small buyers such as households, two-wheeler commuters and farmers from the impact of elevated global crude oil price.

The government has asked the industry associations to make their members aware of both the principle and ...