Effective from January 18, 2013 the government allowed the oil companies to price bulk diesel sales at market price. However, the retail price of diesel continued to be subsidized for 21 months. During this interim period, the bulk supplies of diesel used to be costlier than the subsidized retail price. The inevitable happened. Bulk sales comprise supplies to private buses, transport corporations, power utilities, industrial units, railways and defence establishments. Of these, buses are the only ones that could move over to retail outlets. They really moved out and shifted their procurement from retail outlets.
