Bulk Diesel Price Hike: The price of diesel sold to bulk users has been hiked by about Rs 25 per litre in line with a near 40 per cent rise in international oil prices, but retail rates at petrol pumps remain unchanged, sources said told PTI on Sunday. Petrol pump sales have jumped by a fifth this month after bulk users like bus fleet operators and malls queued up at petrol bunks to buy fuel rather than the usual practice of ordering directly from oil companies, widening the losses of retailers.
An impending rise in fuel prices has led customers, both bulk and retail, to buy oil in advance, translating into a surge in sales this month, and putting the entire supply chain under pressure, RIL told Moneycontrol.com. “There is a massive surge of demand at fuel stations (retail outlets) due to increased delta of around Rs 25 per litre between retail and industrial price of diesel, leading to heavy diversion of bulk HSD (direct customers) to retail outlets. There is also a very heavy lifting of fuel by dealers and both B2B and B2C customers, who have advanced their purchases, to top up their tanks and capacities in anticipation of price increase which is overdue,” RIL said.
The Rs 25/litre hike in diesel prices does not impact retail rates, so in Mumbai price for bulk users has been hiked to Rs 122.05 as compared to Rs 94.14 a litre price of the same fuel sold at petrol pumps. This 40 per cent jump in prices is in-line with international oil price movement and also the hikes were seen in aviation fuel which is now up 50 per cent since January.
Oil prices jumped $2 on Monday as Ukrainian forces dug in against heavy Russian attacks, while major oil producers reported they are struggling to produce their allotted quotas under a supply agreement. Brent crude futures climbed $1.96, or 1.8 per cent, to $109.89 a barrel at 0039 GMT, adding to a 1.2 per cent rise last Friday. U.S. West Texas Intermediate (WTI) crude futures rose $2.09, or 2 per cent, to $106.79, extending a 1.7 per cent jump last Friday.
Although the increase in crude oil prices has not been transferred to consumers of petrol and diesel so far, oil marketing companies raised jet fuel prices by a steep 18 per cent on Wednesday. In a first, aviation turbine fuel (ATF) prices are now above the Rs 1 lakh per kilolitre mark.
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