Diesel price for bulk users increase Rs 25/litre; private retailers fear closure
The price of diesel sold to bulk users has been increased by about Rs 25 per litre due to a near 40 percent spike in international oil prices. Retail rates at petrol pumps, however, remain unchanged, informed sources.
Petrol pump sales have increased by a fifth this month as bulk users, such as bus fleet operators and shopping malls, queued up at gas stations to buy fuel rather than purchasing directly from oil firms, causing retailers to lose revenue.
Private retailers like Nayara Energy, Jio-b, and Shell have been affected the hardest, refusing to cut back on volume despite an increase in sales. However, shutting pumps is now a more practical option than continuing to sell more petrol at the same price.
In Mumbai, the price of diesel for bulk users has been raised to Rs 122.05 per litre, while the price of the same fuel at petrol stations is Rs 94.14 per litre.
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According to reports, the large price difference between the bulk user rate and the petrol pump price of about Rs 25 per litre has led bulk users to refuel at petrol pumps rather than hire tankers directly from oil companies.
The losses of oil companies, which were already bleeding from selling petrol and diesel at low prices, have widened due to this.
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-PTC News
