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India Tells Private Fuel Firms: No More Sales Caps!
1 Oct
Summary
- Private retailers are limiting fuel sales to control losses.
- Retail fuel prices have not changed since May.
- State-run retailers face significant losses on diesel sales.
India's Oil Secretary, Neeraj Mittal, has declared that private fuel retailers are prohibited from rationing sales. This announcement follows instances where companies like Reliance Industries and Nayara Energy have limited the availability of diesel and gasoline.
The decision by private firms to cap sales stems from their efforts to curb losses. This is due to retail prices for diesel and gasoline remaining unchanged since May, even as global oil prices have escalated.
According to company officials, state-run fuel retailers are experiencing significant financial strain, with reported losses of approximately 50 rupees per liter on diesel sales.
Secretary Mittal emphasized that the government's stance on this matter is firm and that capping fuel sales is not permissible. Previous instructions have been issued to retailers regarding this issue.
