In an attempt to minimize shortages amid global supply difficulties connected to the Middle East conflict, the Indian government has banned daily diesel sales and placed limitations on bulk purchases of gasoline and diesel at retail fuel outlets.
Retail fuel outlets are required to restrict diesel sales to a maximum of 200 liters per client or vehicle per day, under an order issued late on Thursday. Additionally, the order forbids purchasers from reselling the fuel.
Additionally, the government has prohibited business consumers from buying petrol at retail stations, including logistics and transportation companies. gasoline shortages at some retail stations were a result of many business customers switching to state-owned gasoline companies’ retail locations, where prices were lower than those at bulk supply depots.
The government claims that the limitations are meant to prevent hoarding and supply diversion, maintain continuous fuel delivery at fair prices, and guarantee equitable and sufficient availability of gasoline and diesel across the country.
While industrial and bulk users pay market-linked rates, state-owned fuel dealers are currently losing about Rs 36.5 per litre on diesel sold through retail locations. Sales of gasoline are losing about Rs 9 per litre.
The profitability of major state-run fuel retailers, such as Indian Oil Corporation, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited, which together account for approximately 90% of the nation’s more than 100,000 fuel stations, has been impacted by increased domestic sales at subsidized prices, even though India is still a net exporter of refined petroleum products.
Citing growing geopolitical tensions resulting from the US-Israel confrontation with Iran, the order stated that the situation has put strain on gasoline availability, global petroleum supply lines, and maritime networks. According to the administration, this calls for careful handling and fuel economy.
Unless they are removed earlier by a separate notification, the measures will be in place for a maximum of ninety days.
