Indian fuel retailers cap diesel sales as industrial buyers exploit price gap

Private fuel retailers Jio-bp and Nayara Energy have imposed daily diesel purchase limits at their outlets, capping sales at 50 litres per customer for Jio-bp and 70 to 200 litres at Nayara, as industrial buyers exploit cheaper retail fuel prices. The surge in bulk purchases, with some users buying 400 to 600 litres at a time, has strained station inventories, prompting the restrictions. Retail diesel prices have stayed unchanged since May despite international crude surging to around USD 108 a barrel, creating a price gap of up to Rs 40 a litre versus bulk fuel. Public sector retailers IOC, BPCL, and HPCL may follow suit. The measures highlight market distortions, with potential continued diversion straining supplies for motorists if the differential persists.