finance
India Limits Retail Fuel Sales for 90 Days
India limited gasoline and diesel purchases at retail stations and banned commercial buyers from those outlets. The measures respond to reduced crude imports after Middle East supply routes were disrupted.
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India imposed limits on gasoline and diesel sales at retail fuel stations and banned commercial consumers from buying any fuel from those outlets. Daily diesel sales at retail stations were capped at 200 litres per vehicle or customer, and resale of the capped fuel was forbidden. Commercial users must now obtain fuel from bulk sellers.
The restrictions took effect under a government order that set an initial period of 90 days but allowed earlier cancellation. Retail stations had been drained after commercial buyers rushed to purchase fuel there because prices are lower than at bulk terminals. The measures follow the cutoff of more than 40 percent of India’s crude oil flows that previously passed through the Strait of Hormuz.
India, the world’s third-largest crude importer, ended a four-year freeze on fuel prices and raised them four times within a single month. 88 percent in March. 19 percent.
Wholesale inflation is projected to exceed 9 percent in May. ZeroHedge reported the restrictions, citing separate accounts from Bloomberg and Reuters that described the volume limits, the 90-day term, and the shift of commercial purchases to bulk suppliers.
