Politics · India Bureau
India to bar private fuel retailers from imposing purchase caps
The government has signalled it will not tolerate restrictions on petrol and diesel sales by private retailers, as major operators attempt to curb bulk purchases driven by a widening price gap between retail and industrial fuel rates.
LSN India ·
India's Oil Secretary Neeraj Mittal said Thursday the government would formally direct private fuel retailers to stop limiting customer purchases, citing concerns over the restrictions being imposed by operators including Jio-bp and Nayara Energy.
"Nobody is allowed to cap fuel sales. It is not acceptable; it is not done," Mittal told reporters, emphasizing that the government's stance on the matter remained unchanged.
Private retailers introduced purchase caps at select outlets last month as large industrial consumers—including factories, telecommunications companies, hotels and hospitals—increasingly turned to retail petrol pumps to purchase diesel at cheaper rates. Jio-bp capped diesel sales at 50 litres per customer per day at some locations, while Nayara Energy implemented similar restrictions.
The surge in bulk purchases has been driven by an exceptional price differential of up to Rs 50 per litre between retail diesel and fuel sold under industrial contracts. The gap has created strong incentives for large users to bypass their usual bulk supply arrangements and purchase from regular petrol pumps instead.
The government directive is expected to restore unrestricted fuel sales at private retail outlets across the country.