Government’s warning to industrial consumers: The government has warned industrial consumers against purchasing from retail pumps. india news

Government has warned industrial consumers against purchasing from retail pumps

New Delhi: Issuing a stern warning to industrial consumers buying diesel from retail outlets due to differential pricing and creation of artificial shortage of fuel in some parts of the country, the government on Wednesday said there is “more than enough” supply of petrol and diesel to meet the demand.The government said industrial consumers are shifting their purchases to retail pumps, leading to local shortages at the expense of ordinary citizens, and urged industry associations to make them aware of the consequences of such violations. It also asked states and union territories to form special squads and take strict action against bulk consumers purchasing from retail shops, hoarders and black marketeers under relevant provisions of the Essential Commodities Act and control orders.According to the government, about 29% of the bulk diesel volume of public sector oil retailers shifted to retail outlets in the current month, while sales volumes at fuel stations run by private oil marketing companies declined by 38%.While the price of diesel for retail consumers in Delhi is Rs 95.2 per litre, bulk consumers like industries get it at Rs 134 per litre. Private oil retailers also sell diesel at more than Rs 130 per litre.Officials said there were continuous reports of shortage at retail outlets from different parts of the country, following which an assessment was conducted by both the petroleum ministry and oil marketing companies. The assessment found that wholesale consumers were purchasing from retail stores.While Petroleum Minister Hardeep Singh Puri was coordinating with public sector OMCs, states and industry bodies to ensure uninterrupted supply of petrol and diesel to all, Petroleum Secretary Neeraj Mittal also held a review meeting with Chief Secretaries of states and UTs, which was attended by industry bodies FICCI and CII.“The picture that emerges from the field is consistent. There is no shortage of any petroleum product. There is a pattern of arbitrage in pockets which is creating an appearance of disarray,” the petroleum ministry said in a statement.Amid the disruptions in West Asia, state-run OMCs have deliberately kept petrol and diesel prices low to protect retail customers – families, two-wheeler commuters and farmers at the pump – while incurring a loss of around Rs 550 crore per day on sales of petrol, diesel and domestic LPG. “This does not extend to industrial procurement, where pricing tracks international actual data as a matter of permanent policy,” the government said.

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