Nayara Energy has assured customers that fuel supplies remain available across its retail network after the government warned oil marketing companies that they cannot cap sales of petrol or diesel. The private-sector retailer said it would maintain adequate stocks at more than 7,100 outlets amid increased demand from bulk diesel users.
The company, which accounts for roughly 7 per cent of India’s petrol pump network, said no supply restrictions had been imposed on its dealers. “We remain committed to serving the Indian market and meeting the demand for fuel across the length and breadth of the country,” Nayara Energy told BusinessLine.
Nayara said it continues to maintain fuel availability across its nationwide retail network and is taking measures to ensure access for customers in line with current demand patterns. It described ensuring optimum supplies to more than 7,000 stations and other channels, including bulk customers, as its priority.
The assurance follows comments by Petroleum Secretary Neeraj Mittal that oil marketing companies are not permitted to limit fuel sales. “Nobody is allowed to put a cap on sales, so if they are putting a cap on sale, we will take it up,” Mittal said on Thursday. He added that the government’s position had not changed and that similar letters had been issued to companies in the past.
The government’s response came after private fuel retailers, including Jio-bp and Nayara Energy, introduced limits on diesel sales. Jio-bp is understood to have capped sales at 50 litres per transaction per day, while Nayara Energy has restricted sales in the range of 70 to 200 litres per transaction per day, according to the report.
The restrictions have emerged as bulk diesel consumers, including telecom tower companies and industrial users, visit retail fuel outlets to obtain diesel intended for retail customers. The shift in purchasing patterns has added pressure to outlets that serve motorists and other everyday users, although the report does not specify the total volume being diverted to bulk buyers.
Nayara Energy owns and operates the Vadinar refinery, which has a capacity of 20 million tonnes per annum. The company said its retail network and other supply channels would continue serving the Indian market. Its statement did not provide details of how the transaction-level restrictions described in the report would be reconciled with its assurance that no supply restrictions had been imposed on dealers.
Retail petrol and diesel prices have remained unchanged since May despite volatility in global crude prices. Oil marketing companies have, however, raised diesel prices for industrial and other bulk consumers, creating a price difference that has encouraged bulk users to seek supplies from retail outlets. Jio-bp had not commented on the Petroleum Secretary’s response at the time of publication.
The immediate regulatory issue is whether transaction-level limits at retail outlets are consistent with the government’s direction that fuel sales cannot be capped. The Petroleum Ministry’s next response and the actions taken by oil marketing companies will determine how supplies are managed between retail motorists and bulk diesel consumers.
