India Orders End to Fuel Sales Rationing
Private retailers like Reliance Industries and Nayara Energy had restricted diesel and gasoline sales to limit losses from selling at below-market rates
India will ask private fuel retailers to end sales rationing amid rising oil prices, as the government maintains its stance that capping fuel sales is not acceptable.
The move comes after Indian private refiners Reliance Industries and Nayara Energy restricted diesel and gasoline sales at their service stations to limit losses from selling the fuels at below-market rates.
State-run fuel retailers are losing about 50 rupees per litre on diesel sales, company officials said. Despite rising oil prices, India has not revised retail diesel and gasoline prices since May.
The government had previously issued instructions to retailers on the matter and its position remained unchanged. The government's stance is clear: capping fuel sales is not acceptable, and retailers will be told to end the practice.
## Why it matters The decision affects not just private fuel retailers but also state-run fuel retailers, which are already incurring significant losses due to the unchanged retail prices. The government's move is likely to impact the entire fuel retail industry in India, as it tries to balance the interests of both private and state-run retailers.
