New Delhi: India’s Reliance Industries Ltd, operator of the world’s biggest refining complex, is selling diesel at a cheaper rate than state fuel retailers, several petrol pump dealers said on Tuesday, boosting local sales of its fuel.
Reliance and BP’s retail fuel joint venture is selling diesel at around Re 1 per liter less than state-run Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum, at least six dealers who run fuel stations under the Jio-BP brand said. operate. Said.
For at least the last one year, Reliance was selling diesel at a higher rate than state-owned companies, which are selling the fuel at below-market rates. State retailers have capped their prices since May last year to protect consumers and aid the government’s efforts to control inflation.
This prompted Reliance and fellow private refiner Nayara Energy to focus on exporting diesel to benefit from higher profit margins on overseas sales.
Diesel accounts for about two-fifths of India’s total refined fuel consumption.
Diesel margins have declined significantly since reaching a record high of more than $71 a barrel in June after Russia invaded Ukraine, making a case for cutting local prices.
Refining margins for gasoil with a sulfur content of 10 parts per million fell to about $15 a barrel on Tuesday.
The state’s retailers, which control about 90% of India’s retail fuel stations, are yet to reduce their retail diesel prices.
Reliance did not immediately respond to an email seeking comment on its diesel prices.
($1 = 81.7800 Indian Rupees)
(Reporting by Nidhi Verma; Editing by Kim Coghill and Christian Schmollinger)
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