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Jio-bp, Nayara Energy Cap Diesel Sales as Bulk Buyers Shift
POWER & RENEWABLE ENERGY

Jio-bp, Nayara Energy Cap Diesel Sales as Bulk Buyers Shift

Private fuel retailers Jio-bp and Nayara Energy have capped diesel purchases at their outlets as industrial and other bulk consumers shift 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, while Nayara Energy outlets have introduced limits ranging from 70 litres to 200 litres. Public sector retailers Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) may also impose restrictions, according to people aware of the matter.

Retail petrol and diesel prices have remained unchanged since May despite international crude prices rising to around $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 commercial users to buy fuel from retail stations.

Factories, telecom companies, hotels, malls, data centres and hospitals are among the bulk users increasingly purchasing between 400 and 600 litres from retail outlets. The higher demand is putting pressure on station inventories, while replenishment is taking at least a couple of days.

Jio-bp operates 2,227 outlets and Nayara Energy operates 7,105. IOC, BPCL and HPCL operate 43,289, 25,587 and 25,238 outlets, respectively, giving the public sector companies a significantly larger retail footprint.

Jio-bp said its stations were adequately stocked and that the purchase limits were intended to ensure equitable fuel availability amid prevailing demand dynamics, particularly from industrial and non-transport users. The company’s measures come as retailers manage demand from customers seeking to benefit from the difference between retail and bulk fuel prices.

Private fuel retailers Jio-bp and Nayara Energy have capped diesel purchases at their outlets as industrial and other bulk consumers shift 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, while Nayara Energy outlets have introduced limits ranging from 70 litres to 200 litres. Public sector retailers Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) may also impose restrictions, according to people aware of the matter. Retail petrol and diesel prices have remained unchanged since May despite international crude prices rising to around $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 commercial users to buy fuel from retail stations. Factories, telecom companies, hotels, malls, data centres and hospitals are among the bulk users increasingly purchasing between 400 and 600 litres from retail outlets. The higher demand is putting pressure on station inventories, while replenishment is taking at least a couple of days. Jio-bp operates 2,227 outlets and Nayara Energy operates 7,105. IOC, BPCL and HPCL operate 43,289, 25,587 and 25,238 outlets, respectively, giving the public sector companies a significantly larger retail footprint. Jio-bp said its stations were adequately stocked and that the purchase limits were intended to ensure equitable fuel availability amid prevailing demand dynamics, particularly from industrial and non-transport users. The company’s measures come as retailers manage demand from customers seeking to benefit from the difference between retail and bulk fuel prices.

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