Several petrol pumps across the country remained closed on Monday after diesel prices were hiked by Rs 25 for bulk customers. Diesel prices were hiked by around Rs 25 per liter in India on Sunday for bulk users, following a spurt in international crude oil prices.
After this hike, the price of diesel for bulk customers has gone up to Rs 122.05 per liter in Mumbai and Rs 115 per liter in Delhi. However, there has been no change in diesel prices for retail customers.
It is necessary to mention here that wholesale customers are those who buy diesel or petrol directly from oil companies instead of petrol pumps. These include railways to big truck operators and malls etc.
However, now due to the increase in the rate of diesel by Rs 25 for wholesale customers, they have started buying oil from petrol pumps instead of oil companies. Buying oil from petrol pumps is getting cheaper for the bulk customers. Due to this the sales of petrol pumps have increased, but instead of making profit, they are making losses. This is because despite the huge jump in oil prices in the international market, the prices of petrol and diesel have not yet increased for retail customers and oil companies are selling petrol and diesel at a loss.
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The crisis of private companies increased
The most affected have been private companies like Nayara Energy, Jio-BP and Shell, which have not yet reduced the volume despite increasing sales. It will no longer be economically viable for these companies to run their own petrol pumps. Several pumps of Shell, Naira and Jio-BP were shut down claiming that customers are now choosing IOC, BPCL, HPCL and they cannot compete with these companies.
Tankers not getting booked from oil companies
He said that there is a huge difference of about Rs 25 per liter between the rate of wholesale customers and the price of petrol pump. Due to this, wholesale customers are now filling fuel at petrol pumps instead of booking tankers directly from oil companies. This is increasing the losses of oil companies, which are already suffering losses due to selling petrol and diesel at below cost.
Prices have not increased since 136 days
Stock availability is not a problem for Mumbai and Maharashtra at the moment. Three sources with knowledge of the matter said that since the record 136 days the fuel prices have not increased due to which it would be a more practical option for the companies to shut down the petrol pumps instead of selling more fuel at these rates.
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