Fuel rationing begins at India’s Reliance, Nayara pumps as crude prices surge
Private fuel retailers are taking measures to ensure availability as industrial demand and bulk purchases add pressure on supplies
India's Reliance Industries Ltd. and Nayara Energy Ltd. have initiated fuel rationing to curb losses from surging crude costs and stagnant retail prices, according to sources familiar with the situation. Despite the lack of price changes at Indian gas stations since May, crude is now trading around $107 a barrel. All refiners are legally free to set their prices, but private sector companies often mirror the actions of state-owned entities, which consult with the government before making changes.
Nayara, supported by Rosneft Oil Co., has limited diesel purchases to 200 liters and gasoline to 30 liters at its fuel stations. Reliance BP Mobility, a joint venture between Reliance and BP Plc, has also restricted diesel sales at certain locations. Both companies stated they are implementing measures to ensure fair fuel distribution, given the current demand dynamics.
Global gasoline and diesel prices have skyrocketed due to supply shortages caused by conflicts in the Middle East and Russia-Ukraine tensions, which have turned exports more profitable for Indian refiners. However, this has resulted in a loss of about 5 rupees per liter of gasoline and 23 rupees per liter of diesel for these retailers.
Some outlets have observed truckers making more frequent refueling stops as the rationing forces them to visit fuel stations more often.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
