Market Chatter: India Places Curbs on Commercial Consumers Buying Fuel from Retail Stations
The Indian government has restricted commercial consumers from buying fuel from retail stations due to the global fuel shortage amid the war in the Middle East, according to a Reuters report on Thursday, citing a government order.The government has also imposed limits on daily diesel purchases to prevent shortages in the domestic market.As per the report, the order directed retail fuel station dealers to cap the sale of diesel at 200 liters per customer or vehicle a day, adding that customers cannot resell the diesel.The move is seen as a crackdown on commercial customers, like trucking companies, that have been purchasing diesel from outlets owned by state-run oil marketing companies, which sell fuel cheaper than at the bulk supply points. This has led to shortages at retail pumps in some areas, the report said.The order specified that the measures will remain in force for an initial period of up to 90 days unless revoked earlier through a separate order.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)