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Sale of bulk diesel declines sharply

Sale of bulk diesel declines sharply
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According to media reports, sale of diesel to bulk customers declined about 40 percent in February, the first month after the government allowed oil firms to charge market price for bulk consumers.

It may be noted that bulk diesel sales usually account for 18 percent of the 70 million tonne of diesel consumed in a year.

But sale of diesel to retail consumers has reportedly risen 7 percent. Consequently, total diesel sales have fallen 2 percent during the month, preliminary data suggests.

The sharp fall in the sale of bulk diesel and rise in retail sales may prompt the oil ministry to propose a sale limit of 200 litre for customers taking away the fuel in a drum, reports indicate.

According to government sources, the oil ministry will soon issue the order restricting sale of diesel from retail outlets to commercial clients such as operators of telecom towers, cinema halls, industrial units and state transport corporations.

Since Railways have operational problem in shifting their purchases to retail outlets, it may continue with direct or bulk purchases from oil companies.

Large customers such as state roadways are refuelling their buses at retail pumps, saving about Rs 11 per litre. State oil firms officials say even railways is vulnerable to switching to private firms such as Reliance Industries (RIL) and Essar Oil.

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