Under government directives, public sector oil companies are currently bearing losses of Rs 550 crore daily on the sale of petrol, diesel, and LPG. This move aims to protect domestic consumers by not passing on the full increase in global prices. The cushion provided is specifically for retail consumers, such as households, two-wheeler users, and farmers at fuel stations. However, this benefit does not extend to industrial buyers, who follow international pricing norms.
Private oil marketing companies are witnessing a significant drop of around 38% in diesel sales this month, both at retail outlets and for bulk customers. Consequently, this volume is entirely shifting towards public sector oil marketing retail outlets. Additionally, PSU bulk customer volumes are also decreasing by approximately 29%, moving towards retail outlets. The government has expressed concern over this trend and urged industry associations to educate members about the repercussions of such actions.
To combat malpractices like hoarding, black marketing, and unauthorized stocking, the government has urged states and union territories to establish special squads. These squads are tasked with taking strict actions against bulk consumers diverting supplies meant for retail consumers. The country reassures that it has abundant supplies of petrol and diesel to meet all domestic needs, both retail and industrial. India’s refining capacity and export strength position it as a major player in the global refined products market.
The government emphasizes that there is no supply shortage and urges citizens to rely on official communications. It highlights the coordinated efforts across the Centre, States, and industry to ensure energy security during this period. The public is advised to disregard rumors and misinformation, understanding that the current challenges are related to arbitrage and not a supply issue.
