Railways extends validity of diesel supply rate contracts
RAILWAYS & METRO RAIL

Railways extends validity of diesel supply rate contracts

The Indian Railways has extended the validity of the diesel supply rate contracts it had signed in March 2020 by six months till the end of March 2023, according to people in the know, a move that will protect the national transporter from sharp volatility in oil prices.

These supply agreements have a clause that binds oil companies to supply diesel to the railways at below retail rates.

Typically, a bulk supply of diesel would be available to large buyers like Indian Railways at rates lower than the retail prices. However, present bulk prices are higher as oil companies have not revised retail prices in line with the crude costs.

Retail diesel prices were last revised on May 23, 2022. It is estimated that oil companies are selling bulk diesel to consumers such as transport fleets, shopping malls and factories at Rs 25-40 per litre more than retail prices.

Also read:
Railway formally adopts RORO fees in order to match road rates
35 rail projects in Odisha at different stages of execution


The Indian Railways has extended the validity of the diesel supply rate contracts it had signed in March 2020 by six months till the end of March 2023, according to people in the know, a move that will protect the national transporter from sharp volatility in oil prices. These supply agreements have a clause that binds oil companies to supply diesel to the railways at below retail rates. Typically, a bulk supply of diesel would be available to large buyers like Indian Railways at rates lower than the retail prices. However, present bulk prices are higher as oil companies have not revised retail prices in line with the crude costs. Retail diesel prices were last revised on May 23, 2022. It is estimated that oil companies are selling bulk diesel to consumers such as transport fleets, shopping malls and factories at Rs 25-40 per litre more than retail prices.Also read: Railway formally adopts RORO fees in order to match road rates35 rail projects in Odisha at different stages of execution

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code