Jio-BP, Nayara Energy Impose Limits On Diesel Purchases, PSUs To Follow As Industrial Buyers Shift to Cheaper Retail Fuel
“So Jio-bp outlets have reportedly capped diesel purchases at 50 litres per customer per day, while Nayara Energy’s transaction limits at outlets range from 70 litres to 200 litres. We expect state-owned leading fuel retailers like Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) too are likely to impose quantity restrictions soon,” the sources said
New Delhi: Fuel quantity restrictions for consumers are on the cards as private fuel retailers such as Jio-bp and Nayara Energy are learnt to have imposed limits on diesel purchases at their retail outlets as industrial and other bulk consumers turn to petrol pumps to take advantage of cheaper retail fuel, putting pressure on supplies and retail networks. However, state-owned fuel retailers will follow suit soon.
The move of such fuel retailers come after observing the fact that big-time consumers like factories and manufacturing plants use bulk quantities of diesel to run machinery or backup power systems as well as telecom companies, hotels, malls, data centres and hospitals that rely on diesel generator sets for emergency power. “Some such users are buying upto maximum of 600 litres at a time from retail outlets, significantly more than the quantities typically purchased by individual motorists,” industry sources said.
“So Jio-bp outlets have reportedly capped diesel purchases at 50 litres per customer per day, while Nayara Energy’s transaction limits at outlets range from 70 litres to 200 litres. We expect state-owned leading fuel retailers like Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) too are likely to impose quantity restrictions soon,” the sources said.
“The surge in bulk purchases has put pressure on fuel inventories at individual retail stations. Each outlet has finite storage capacity, while replenishment through fuel supply chains can take at least a couple of days. The resulting drawdown in stocks has prompted Jio-bp and Nayara to introduce daily purchase limits at their outlets,” the sources added.
Reacting to this development, Jio-bp spokesperson said in a statement that all Jio-bp mobility stations are operational and adequately stocked to serve our customers. “We continue to offer our high-performance active technology petrol and diesel and remain committed to providing seamless and reliable refuelling services across our network,” he said.
“Given the prevailing demand dynamics, we are taking appropriate measures to ensure equitable availability of fuel for mobility and transportation needs, particularly in view of demand from industrial and other non-transport use. These measures are intended to support the broadest possible access to fuel for customers based on demand conditions,” the statement said without giving in details.
At the same time, Nayara Energy also said in another statement that it continues to maintain fuel supply across its nationwide dealer retail network and ensure seamless access to fuel for its customers. “We remain committed to serving the Indian market and meeting the demand for fuel across the length and breadth of the country,” it said.
“As the country’s largest private sector fuel retailer, our only priority is to ensure optimum supplies to over 7,000 stations and other channels, including bulk customers. We continue to leverage innovation in fuel retailing and customer-centric solutions to better serve Indian consumers and support India's growing energy requirements,” it added.