The government says no fuel retailer may cap diesel sales. That came on Thursday, 1 October, after Jio-bp and Nayara Energy began limiting how much diesel a customer could buy at their pumps. For contractors who fill site fleets from a retail pump, the caps were a direct hit to working hours. The pushback lifts the immediate pressure. The price gap that caused the caps is still there.
The quick facts
- The caps: Jio-bp limited diesel to 50 litres per customer per day at its outlets, and Nayara Energy set limits of 70 to 200 litres, as reported from 28 September.
- The cause: bulk buyers moved to retail pumps because pump prices have been unchanged since May while bulk diesel tracks global crude. Reports put the gap at Rs 40 to Rs 50 a litre.
- The response: Oil Secretary Neeraj Mittal said on 1 October that nobody is allowed to cap fuel sales and that the government will take it up with the retailers.
- Network size: Jio-bp runs 2,227 outlets and Nayara 7,105, against 43,289 for Indian Oil, 25,587 for BPCL and 25,238 for HPCL.
What the government said
PSU Watch and Business Today both report Mittal’s remarks. He said the caps were not acceptable and that instructions had been given to the companies before. Oil Minister Hardeep Singh Puri said the ministry was in touch with the private retailers. The first reports, carried by PSU Watch, The Hans India and Millennium Post, said factories, telecom firms, hospitals and data centres were buying 400 to 600 litres at a time from pumps. They also said the public-sector retailers might bring in limits of their own. None had been reported when Mittal spoke.
Why does a 50-litre cap matter on a site?
Do the shift arithmetic. Our JCB mileage guide puts a backhoe loader at about 4 to 8 litres an hour on normal site work. That is 32 to 64 litres over an 8-hour shift, so a 50-litre limit barely covers one machine for one day. A 20-tonne crawler excavator runs at roughly 13 to 16 litres an hour, according to our excavator fuel guide. That is 104 to 128 litres a shift, more than twice the cap. Those are indicative figures, not model-specific ones. Either way, a contractor filling a bowser for three or four machines could not do it from one Jio-bp pump.
Our take: the bigger risk is the gap itself, not the caps. While pump diesel is far cheaper than bulk, retailers will keep rationing quietly, and a correction can come from either side. If pump prices rise, a 20-tonne excavator burning 2,600 to 3,200 litres a month at 200 hours pays Rs 2,600 to Rs 3,200 more for every rupee added per litre. If you price hire jobs wet, check whether your rates have any fuel escalation clause before you quote for the post-monsoon season. And if you stock up while pump diesel is cheap, the site storage limit still applies: 2,500 litres with no container above 1,000 litres before a licence is needed.
What to watch
- Whether the ministry puts its direction in writing, and whether Jio-bp and Nayara withdraw the limits.
- Whether Indian Oil, BPCL or HPCL start rationing at their pumps, as the first reports suggested they might.
- Any move in retail diesel prices, which have not changed since May.
Weighing fuel burn across machines? Put engine and tank specs side by side on DesiMachines Compare before your next purchase.
FAQ
How much diesel can I buy at a Jio-bp pump?
Jio-bp outlets capped diesel at 50 litres per customer per day, according to reports from 28 September. On 1 October the Oil Secretary said no retailer is allowed to cap sales. Check at your pump whether the limit has been withdrawn.
Why did Jio-bp and Nayara cap diesel sales?
Retail pump prices have not changed since May while bulk diesel follows global crude, so bulk users switched to pumps. Reports put the gap at Rs 40 to Rs 50 a litre, and stations were running short.
Have Indian Oil, BPCL and HPCL capped diesel?
The first reports said they might. None had been reported when the Oil Secretary spoke on 1 October.
Related on DesiMachines: How to Stop Diesel Theft: The Real Cost of Fuel Loss
Source: Business Today
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