- The Centre is in talks with private retailers after diesel sale limits were imposed by Jio-BP, Nayara Energy
- The Petroleum Ministry stated private fuel retailers cannot independently restrict diesel sales to consumers
- Industrial buyers shifting to cheaper retail diesel have increased supply pressure at petrol pumps
The Centre is in talks with private fuel retailers after Jio-BP and Nayara Energy imposed limits on diesel sales at their pumps, with the government indicating that such curbs may have to be withdrawn.
The Ministry of Petroleum and Natural Gas has made it clear that private fuel retailers cannot independently restrict diesel sales, as industrial buyers shift towards cheaper retail diesel and increase pressure on supplies at petrol pumps.
“Nobody is allowed to cap diesel sales,” the MoPNG Secretary said, underscoring the government's position on the issue.
The Centre is currently engaging with private fuel companies and may ask them to lift the restrictions, according to the information available. The government has described the decision by private retailers to cap diesel sales as unacceptable.
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The restrictions at Jio-BP and Nayara pumps come as industrial consumers increasingly turn to retail outlets for diesel because of the lower prices available there. The shift has put additional pressure on diesel availability at retail pumps and prompted companies to limit sales.
The development puts the focus on how fuel demand is being distributed between industrial buyers and retail consumers. As industrial users increasingly source diesel from retail pumps, availability at those outlets has come under strain, resulting in the latest sales restrictions.
The Centre's intervention suggests the government is seeking to address the supply pressure without allowing private retailers to impose broad limits on diesel purchases.
Officials are in touch with the affected companies and could push for the caps to be removed. The government's stance is that restricting diesel sales at private retail outlets is not an acceptable solution to the demand pressure created by industrial buyers.
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The issue now hinges on discussions between the Centre and private fuel retailers, with any rollback of the caps likely to depend on how companies respond to the government's position.
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