Jio-BP and Nayara Energy Impose Diesel Purchase Limits Amid Surging Crude Prices
Private fuel retailers restrict diesel sales as crude oil costs rise sharply.
1Private Retailers Impose Limits
Amid surging crude oil prices due to the West Asia conflict, private fuel retailers like Jio-BP and Nayara Energy have imposed diesel purchase limits at select outlets. Jio-BP restricts sales to 50 litres per customer, while Nayara Energy limits range from 70 to 200 litres per transaction. These measures aim to mitigate financial pressures caused by rising procurement costs.
2State-Owned Companies Unaffected
State-owned oil marketing companies, including Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation, continue to sell diesel without restrictions. Together, these companies operate around 90% of India’s fuel stations, ensuring broader supply stability despite private sector limitations.
3Impact on Commercial Vehicles
The restrictions could significantly affect long-distance commercial vehicles, which require larger diesel quantities. Remote areas with fewer fuel stations may face more pronounced challenges, as operators struggle to meet their fuel needs under the new purchase limits.
4Crude Procurement Costs Soar
India’s crude oil basket surged to $117.4 per barrel on September 21, compared to an average of $66 per barrel in 2025-26. This sharp increase has squeezed margins for oil marketing companies, as domestic fuel prices have not risen in line with international crude prices.
5Losses for Oil Marketing Companies
ICRA estimates that oil marketing companies are incurring losses of ₹9 per litre on diesel and ₹8 per litre on petrol. These losses stem from the widening gap between rising crude costs and stagnant domestic fuel prices, exacerbating financial pressures on the industry.
6Supply Disruptions Add Pressure
Saudi Aramco halted crude supplies to Indian refiners following attacks on its East-West pipeline, forcing refiners to seek alternative sources at potentially higher costs. This disruption adds to the cost pressures already faced by the industry, further complicating fuel supply chains.
7Limited Immediate Impact
The immediate impact of the restrictions remains limited, as state-owned companies dominate India’s fuel retail market. However, prolonged high crude prices and continued margin pressures could lead to broader challenges for fuel availability and pricing.
8Focus on Fuel Pricing
The restrictions highlight the growing focus on fuel pricing and availability, particularly for commercial transport operators and consumers in areas with fewer retail outlets. Industry stakeholders are closely monitoring the situation as crude prices remain volatile.