50 litres per customer: Pvt pumps ration diesel

In a report by the Times of India, private fuel retailers have begun imposing limitations on diesel sales at their pumps due to the disruption in oil supplies caused by the West Asia conflict, which has led to a surge in crude prices. While Indian Oil, Bharat Petroleum, and Hindustan Petroleum continue to sell fuel without any restrictions at their outlets, several Jio-BP outlets have been instructed to sell up to 50 litres of diesel per customer, and some have also capped daily sales at 6,000 litres.

Nayara Energy outlets, on the other hand, have set limits ranging from 70 litres to 200 litres per transaction.

The impact of these restrictions is currently limited as the state-run oil marketing companies (OMCs) operate approximately 90% of India's over one lakh fuel stations. However, long-distance trucks, which often carry larger quantities of diesel and travel through remote areas with fewer fuel stations, may be affected by these limits.

The recent curbs on diesel sales come as oil companies grapple with a sharp rise in crude costs. India's crude basket reached $117.4 per barrel on September 21, up from an average of about $66 per barrel in the previous fiscal year, according to ICRA. This increase has put pressure on the oil marketing companies, which are currently losing about Rs 9 per litre on diesel and Rs 8 per litre on petrol despite petrol and diesel prices at the pump not moving in line with crude prices.

The supply side of the fuel chain is also being affected, with Saudi Aramco halting crude supplies to Indian refiners until further notice following attacks on its East-West pipeline. This has forced refiners to seek replacement supplies at higher costs. The current situation differs from a nationwide diesel shortage, as public-sector pumps continue to sell fuel without any restrictions, unlike some private outlets that have implemented these recent limitations.