Now Reading: Jio-BP, Nayara cap diesel sales at select pumps as crude tops $117
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Jio-BP, Nayara cap diesel sales at select pumps as crude tops $117
Private fuel retailers Jio-BP and Nayara Energy have imposed purchase limits on diesel at some outlets as India's crude oil basket crossed $117 a barrel, squeezing oil marketing company margins by an…
Private fuel retailers Jio-BP and Nayara Energy have imposed purchase limits on diesel at some outlets as India's crude oil basket crossed $117 a barrel, squeezing oil marketing company margins by an estimated Rs 9 per litre on diesel. Jio-BP outlets have been instructed to restrict diesel sales to 50 litres per customer, with a daily ceiling of around 6,000 litres at some locations. Nayara Energy outlets are limiting single-transaction diesel purchases to between 70 and 200 litres.
The restrictions are not nationwide and apply only at select private retail outlets. State-owned Indian Oil, BPCL and HPCL, which together operate about 90% of India's more than one lakh fuel stations, continue to sell petrol and diesel without limits. Long-distance commercial vehicles may be affected, especially in remote areas with few fuel stations. The supply situation has been compounded by Saudi Aramco halting crude supplies to Indian refiners after an attack on its East-West pipeline, forcing refiners to seek alternative sources at potentially higher prices.
Indian Opinion Analysis
The caps at private pumps show how the government's strategy of holding domestic fuel prices steady despite surging crude costs transfers the margin squeeze to non-PSU retailers, which lack the balance-sheet buffers or subsidy support of state-owned oil marketing companies. Under the current fuel pricing framework, OMCs are expected to absorb global volatility rather than pass it to consumers in an election-sensitive period. Diesel accounts for about 40% of India's petroleum consumption and is the primary fuel for freight and agriculture, so any sustained supply disruption, even if limited to private outlets, would hit transport costs and inflation. The next signal to watch is whether the government allows a price revision in the fortnightly auto-fuel review, or if the Saudi supply halt extends beyond the current force majeure notice.
Source: livemint.com
This brief was synthesised by AI from the source linked above.
