PSU fuel pumps see sales surge as buyers shift from bulk, private retailers

Petrol and diesel sales at retail outlets run by state-owned oil marketing companies (OMCs) have risen sharply as customers shifted away from bulk fuel purchases and private retailers.

Speaking to reporters, Sujata Sharma, joint secretary, ministry of petroleum and natural said petrol demand has increased more than 30% in around 150 districts, while 14 districts have seen sales more than double in the past one month.

Diesel sales have also surged, with around 156 districts recording growth of over 30% and six districts witnessing more than 100% growth, Sharma said.

Sharp price hikes by private fuel retailers have also led to a diversion of their customers to the pumps of state-run OMCs, she added. According to Sharma, private OMCs have witnessed a nearly 38% decline in diesel sales, while bulk diesel sales have fallen 39% as consumers increasingly turned to retail outlets.

Nayara Energy was the first retailer in the country to raise prices post the West Asia war. On 26 March, Nayara raised petrol prices by ₹5 per litre and diesel by ₹3 a litre to about ₹100.71 per litre and diesel about ₹91.21 per litre.

Meanwhile, price of bulk diesel at dedicated deposit for industrial fuel is around ₹150 compared to around ₹95 in retail pumps in Delhi.

Government steps up preparedness

Sharma further said that OMCs have been told to maintain 30 days of LPG stock going ahead.

Mint earlier reported that the government may mandate a certain time period of LPG storage for state-run OMCs. Further, India’s daily LPG production has increased to an all-time high of 52,000 tonne, the official said.

The comments come amid disruptions in fuel supplies triggered by the ongoing war in West Asia and the blockade of the Strait of Hormuz, through which a substantial share of India’s crude imports move.

The ministry said it is closely monitoring the situation. Petroleum secretary Neeraj Mittal recently held a meeting with chief secretaries of states and Union territories, along with industry associations, to review fuel availability. States have been advised to form special squads to curb hoarding and black marketing.

India’s state-run oil-marketing companies—Indian Oil Corp. Hindustan Petroleum Corp, and Bharat Petroleum Corp—have raised petrol and diesel prices four times between 15 and 26 May by a cumulative ₹7.5 per litre.

In the last instance of price hike, they raised petrol and diesel prices by over ₹2 per litre. According to the government, retail prices remain below international parity levels to shield consumers. State-run OMCs are currently estimated to be incurring cumulative daily revenue losses of about ₹550 crore, down from around ₹1,000 crore before the first hike on 15 May.