Ajay Bansal, General Secretary of the Federation of All India Petroleum Traders (FAIPT) said the body requested oil marketing companies (OMCs) to define who are the bulk consumers of diesel.
The federation asked OMCs to issue clear written instruction supported by the government notification defining who are bulk consumers.
Untill then, FAIPT has advised 42,000 dealer members across the country to sell on single retail sale price to all the customers.
The dealers are confused on the definition of bulk consumers of diesel. The only thing it says is that the sales should be done through the nozzle of the fuel pump, Bansal said. The problem arises when people come with big containers to buy diesel for their gensets, Bansal said.
Petroleum products are a part of the Essential Commodities Act, and as long as the dealer has the stock, he cannot refuse the supply as per the law as it stands today, Bansal added.
OMCs issued an advisory to their dealership networks not to sell diesel in bulk quantities.
The body said that the partial deregulation of diesel prices was not favourable for consumers and dealers as it would result in increase in prices for consumers, while dealer margins would be reduced owing to increased capital deployment.