Diesel price slashed for bulk users

Diesel price continues to be higher for bulk buyers

National oil marketing companies have reduced the price of diesel across the country for bulk consumers, a segment in which road transport corporations and industrial units figure. In Hyderabad, the reduction is more than ₹13 a litre.

Effective July 16, the price is ₹130.07 a litre in Hyderabad. While it is ₹13.15 less compared to the previous price of ₹143.22, this is unlikely to stop bulk consumers from purchasing fuel at retail outlets.

Under a system of dual pricing, for bulk and retail users, the pump price of diesel at retail outlets or petrol bunks of the companies is ₹32.25 less per litre. Indian Oil Corporation retail outlets in the city dispense a litre of diesel for ₹97.82, a price that has remained unchanged for almost two months now.

Retail outlets

The price difference has led to bulk consumers filling up at retail outlets, especially since there are no restrictions on doing so. The difference had risen in the last few months from about ₹25 to ₹40 a litre. Fuelling the increase was the international crude and product prices as well as strengthening of the dollar against the rupee, an official of an oil company, who did not wish to be quoted, said.

There, however, are some bulk consumers, particularly those with heavy construction machinery and equipment that cannot be brought to the retail outlets, who have little option than diesel at the higher rates.

Even after the latest fortnightly revision, bulk consumers are likely to approach the nearest retail outlet for their diesel requirements, including the State Transport Corporation buses. Most of the consumers prefer this route fearing customer backlash if they adopt a pass through policy.

Fuel supply normal

Interestingly, bulk diesel consumers were blamed for recent fuel shortage at retail outlets in many places recently. Petroleum dealers had then claimed that the oil companies had instructed them to restrict fuel sales, especially diesel to new bulk customers. The closure of private fuel retailers and their customers coming to outlets of State-owned OMCs was also attributed for the shortage.

Telangana Petroleum Dealers Association president M.Amarender Reddy on Monday said normalcy in supplies has been restored, while the official of the oil company said bulk diesel sales have come down.