Officials at key bulk diesel firms in India have expressed concern that bulk customers may buy at fuel service stations, according to local newspaper Business Standard. The report follows the deregulation of the bulk diesel market last week by the Government, which left price controls on diesel at retail outlets.
Following last week’s reform, it is estimated that market-determined prices for diesel in bulk will rise by roughly Rs10 per litre. “We anticipate bulk diesel users may frequent retail outlets…and we cannot stop them. So, a clear distinction between the two consumers is needed,†an unnamed director in fuel marketing at an oil marketing firm told the newspaper. R K Singh, Chairman and Managing Director of Bharat Petroleum Corporation, also spoke of the problem. “There are some bulk diesel users who take fuel away from retail outlets in barrels and that should be curbed,†he said.
Fuel retailers are awaiting clarity from public sector oil companies on whether they can continue to sell diesel in bulk to small industry users. “Currently, small industry users can produce relevant papers and buy diesel from retail outlets. The volumes can be anything higher than 1,000 kilo litres,†remarked Ajay Bansal, general secretary of the Federation of All-India Petroleum Traders.