Fuel Rationing Hits India Amid Middle East Crisis

Reliance Industries has imposed a cap on fuel purchases, limiting customers to around 1,000 rupees ($10.8) worth of gasoline or diesel per visit at its approximately 2,000 Jio-BP fuel stations. This measure, though not formally announced, is being implemented by station operators to curb panic buying and prevent stations from running dry as demand surges. This rationing occurs while India, a major oil consumer, grapples with supply chain disruptions linked to the Middle East crisis. The situation is exacerbated by the vital Strait of Hormuz remaining a high-risk shipping lane. Despite a spokesperson's claim of no formal directive, localized instances of such limits are acknowledged. Reliance's action, while affecting a small percentage of India's total fuel stations, marks a significant step beyond price adjustments. Other retailers, including state-run companies and Nayara Energy, are also navigating these challenges through price adjustments or facing significant losses on fuel sales. India's heavy reliance on oil imports makes it particularly susceptible to Persian Gulf supply fluctuations.