Indian bulk diesel buyers are snapping up diesel from retail stations as pump prices are Rs 25 ($0.33) a litre cheaper than their bulk contract prices, a spokesperson for a fuel retail joint venture of Reliance Industries and energy major BP said.
Indian state-run fuel retailers, who dominate local fuel sales, have not raised pump prices since November 4 despite a surge in global oil and fuel prices, but they have continued to raise prices of direct sales for industrial or bulk clients in line with the terms of those contracts.
“There is a massive surge of demand at fuel stations due to increased delta of Rs 25 a litre between retail and industrial price of diesel, leading to heavy diversion of bulk diesel customers to retail outlets,” said the spokesperson for Reliance BP Mobility Ltd (RBML).
