India's Oil Secretary Neeraj Mittal has declared that private fuel retailers are not permitted to impose caps on petrol or diesel sales at their outlets. This directive comes as the government prepares to instruct these companies to cease such restrictions, which have been implemented by major players like Reliance Industries and Nayara Energy.
Government Firm on No Sales Caps
Mittal emphasized the government's unwavering stance, stating, "Nobody is allowed to put a cap on sales. They are doing it, and we will take it up. We will tell them it is not acceptable." He confirmed that similar instructions had been issued previously, highlighting that the government's position on unrestricted fuel access for consumers remains unchanged.
Private refiners, including Reliance Industries' Jio-bp outlets and Nayara Energy, had introduced purchase limits to stem losses incurred from selling fuel below prevailing market rates. Reports indicated that Jio-bp capped diesel purchases at 50 litres per customer daily, while Nayara outlets implemented limits ranging from 70 to 200 litres.
Market Pressures and Energy Security
These restrictions arose amidst financial pressures on oil marketing companies, which have faced losses on sales of petrol, diesel, and liquefied petroleum gas (LPG) cylinders, partly due to the ongoing West Asia crisis. Despite these global challenges, Petroleum and Natural Gas Minister Hardeep Singh Puri noted that Indian consumers have largely been shielded from extraordinary energy price hikes, although he acknowledged that the "phase of anxiety" for India is not entirely over.
In response to such crises, Secretary Mittal also underscored the critical need for India to diversify its energy portfolio by increasing the share of natural gas in its overall energy mix. He argued against over-reliance on a single fuel source, pointing out that India has "escaped unscathed in many ways" from recent crises without experiencing significant price surges or shortages for households.
To support this diversification, the Petroleum and Natural Gas Regulatory Board has launched National PNG Drive 3.0, aiming to establish five million new domestic piped natural gas connections. Additionally, the MyPNG online portal was introduced to streamline information and facilitate connections between consumers and city gas distribution companies.