Jio-bp, Nayara Cap Diesel Sales as Bulk Buyers Shift to Cheaper Fuel

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, putting pressure on supplies.

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 impose restrictions.

Retail petrol and diesel prices have remained unchanged since May, even as international crude prices have risen to about $108 a barrel. Prices for bulk consumers have moved more closely with global rates, creating a price gap of as much as Rs. 40 a litre and encouraging users with substantial fuel requirements to buy from retail stations.

Factories, telecom companies, hotels, malls, data centres and hospitals are among the bulk users purchasing larger quantities from retail outlets. These customers are reportedly buying between 400 and 600 litres at a time, increasing pressure on station inventories and making replenishment take at least a couple of days.

Jio-bp operates 2,227 outlets, while Nayara Energy has 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 remained adequately stocked and that the measures were intended to ensure equitable fuel availability amid prevailing demand conditions, particularly from industrial and non-transport users.

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