The government has barred industrial, commercial and institutional users from buying petrol and diesel in bulk from retail outlets. According to an official order, the restriction will be in place for up to 90 days and has been imposed after some retail outlets reported abnormal demand growth, particularly for diesel. According to reports, the surge in demand from bulk users came due to the pricing difference. While diesel at petrol pumps costs Rs 95.20 a litre in Delhi, bulk sales are priced at Rs 134.50. The government has asked these buyers to source their requirements from bulk sale points.ย
Bulk users are charged the market price
While bulk users such as telecom towers and industries using diesel for power generation and other feedstock needs are charged market price, the retail pump rates are way lower than the cost. The price difference is due to state-owned oil companies modulating retail prices to provide common users some relief from the surge in crude oil costs due to ongoing tensions in West Asia, which started in late February.