Petrol sellers want clarity on bulk sales

OMCs have advised their dealership network not to sell diesel in bulk quantities

The Federation of All India Petroleum Traders (FAIPT) has asked the government to define “bulk” customers of auto fuels.

Stating that the partial deregulation of diesel prices was not favourable for consumers and dealers, it said the move would result in increase in prices for consumers, while dealer margins would be reduced due to increased capital deployment.

Oil marketing companies have advised their dealership networks not to sell diesel in bulk quantities.

“This has created a confusion because the word bulk has not been defined. The only thing it says is that the sales should be done through the nozzle of the fuel pump,” Ajay Bansal, general secretary, FAIPT, said in a statement.

The problem arises when people come with big containers to buy diesel for their gensets.

“Petroleum products are a part of the Essential Commodities Act, and as long as the dealer has the stock, he cannot refuse the supply as per the law as it stands today,” he added.

FAIPT has requested oil marketing companies to issue clear written instruction supported by the government notification defining who are bulk consumers, Bansal said. Till then, FAIPT has advised 42,000 dealer members across the country to sell on single retail sale price to all the customers.