Reliance Industries and Nayara Energy have restricted petrol and diesel sales to limit losses as global oil prices rise, while government-controlled retail fuel prices remain unchanged.
India’s government will instruct private fuel retailers to stop rationing petrol and diesel sales as rising global oil prices put increasing financial pressure on the country’s energy sector.
Oil Secretary Neeraj Mittal announced on Thursday, October 1, that fuel retailers would not be permitted to restrict sales, reaffirming the government’s position that consumers must have uninterrupted access to fuel.
Mittal said the government had previously issued instructions prohibiting fuel rationing and would reiterate those directions to private retailers.
The announcement follows reports that major private refiners Reliance Industries and Nayara Energy have restricted petrol and diesel sales at their service stations to minimize financial losses.
Both companies have faced mounting pressure from rising international crude oil prices while domestic retail fuel prices remain unchanged.
Fuel retailers face mounting losses
India has not revised its retail petrol and diesel prices since May, despite a sharp increase in global oil prices.
The widening gap between international fuel costs and domestic selling prices has placed significant financial strain on both private and state-owned fuel retailers.
According to company officials, government-owned fuel retailers are currently losing approximately ₹50 per litre on diesel sales.
Private companies, including Reliance Industries and Nayara Energy, have responded by limiting fuel sales at their outlets to reduce losses from selling petrol and diesel below prevailing market rates.
However, the Indian government has maintained that retailers cannot impose restrictions on fuel purchases, regardless of the financial pressures they face.
The government’s latest directive comes amid continued volatility in international energy markets, with rising crude oil prices increasing costs for fuel-importing countries such as India.
The situation highlights the challenge facing Indian authorities as they seek to maintain stable domestic fuel prices while ensuring adequate supplies and addressing mounting losses across the petroleum retail sector.
