Nayara, Reliance BP restrict sales
Nayara Energy, which is backed by Russia’s Rosneft, has capped diesel purchases at 200 litres and gasoline purchases at 30 litres at its fuel stations, according to people familiar with the matter cited by Bloomberg News.
Reliance BP Mobility, the joint venture between Reliance Industries and BP, has also restricted diesel sales at some outlets.
Reliance BP said the measures were being taken in response to prevailing demand conditions to ensure equitable availability of fuel, particularly amid increased demand from industrial and other non-transport users.
Nayara said it continues to maintain fuel supplies across its nationwide dealer network and ensure access for customers.
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Global supply disruptions push fuel prices higher
Global gasoline and diesel prices have risen sharply as supply disruptions linked to the West Asia conflict and the Russia-Ukraine war affect production and trade.
The situation has also increased the incentive for Indian refiners to export fuel rather than sell it domestically at lower prices. Russia has banned diesel exports and could extend those restrictions beyond September, while the US is also considering restrictions on outbound fuel shipments, according to the Bloomberg report.
Private retailers were already selling fuel below cost. ICRA estimated that retailers were losing around ₹5 per litre on gasoline and ₹23 per litre on diesel as of September 9. With crude prices rising further since then, those losses are likely to have widened.
Reliance BP had introduced similar restrictions in April during the early phase of the conflict, when crude flows through the Strait of Hormuz were severely disrupted.
Bulk buying adds to supply pressure
The latest restrictions are primarily intended to prevent bulk consumers from accumulating fuel, according to people familiar with the matter. Some outlets have reportedly seen buyers filling drums and subsequently reselling fuel to bulk customers at higher prices.
The restrictions could, however, push more consumers towards state-owned fuel stations. Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation together account for around 90% of India’s retail fuel sales, making them the primary alternative for customers affected by private-sector restrictions.
State refiners are also facing significant losses because pump prices have remained unchanged. Oil Minister Hardeep Singh Puri said state-owned refiners were losing around ₹5.3 billion, or ₹530 crore, a day by selling fuel below cost.
The impact is already being felt by transport operators. Some truckers have reported having to make more frequent refuelling stops as private fuel stations reduce the quantity of diesel available per vehicle.
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