Reliance reduced the supply of diesel: 10 rupees loss on every liter due to expensive price
Reliance Industries Limited has asked its fuel dealers to cut diesel supply by 50%. This is because the company is incurring a loss of Rs 10-12 per liter on its sale.
Diesel supply halved from Thursday
According to the information, the company took the decision to halve the supply of diesel from Thursday in a meeting on Wednesday night. A Jio-BP dealer said that the area manager had informed that Reliance Industries would supply only half of the diesel volume sold by me in December 2021. They are taking December as the benchmark.
The outlet runs under the name Jio-BP.
Reliance Industries operates fuel oil outlets under the brand name Jio-BP. It is part of a joint venture with BP – Reliance BP Mobility Limited (RBML). The Oil Joint Venture was established in 2020. At that time, BP had paid Rs 7,000 crore to Reliance Industries for its 49% stake in the venture.
The company has 1,400 outlets
RBML plans to increase the fuel oil outlets from about 1,400 at present to more than 5,500 with an investment of Rs 3,000 crore. Another dealer said his diesel trucks were cleared from the fuel distribution station on Thursday. He told that our area manager has asked not to supply diesel in bulk to any customer as our supply is being cut.
Reliance has been reducing supply even before
Owners of several dealerships with Jio-BP said that this is not the first time Reliance Industries is doing this. When there was a similar supply crisis in 2006, 2009, 2012 and 2014, it has been done. However, industry officials said Reliance Industries is expected to boost diesel exports to European countries.
export is the main business
A senior official of the oil marketing company said that exports have been the main business of Reliance Industries. Its major customers are Europe and Eastern America, where the markets present great potential for them. Even if domestic fuel prices rise, it will not affect its export margins.
Loss of about 25 rupees a liter
On an average, the oil marketing companies are incurring losses of up to Rs 25 per liter on the sale of both petrol and diesel. Indian fuel retailers have not increased its prices from 4th November till now. At that time the price of crude oil was $ 83 per barrel, which is now beyond $100. However, on March 7, it went up to $125.
New wave of Kovid eases anxiety
Meanwhile, the new wave of Kovid-19 in China has put the brakes on demand concerns for the time being. Reliance Industries’ twin refineries in Gujarat can process 1.36 million barrels of crude oil per day. Its refineries have always been export-oriented. Europe has become an attractive market for Asian refineries after Russia’s invasion of Ukraine.