Reliance Industries Ltd has limited fuel purchases at its petrol pumps as supplies are being disrupted despite a temporary ceasefire due to the Iran war.
The country’s largest private sector oil refiner is restricting individual purchases ₹It charges $1,000 per visit at fuel stations it operates with partner BP Plc, according to people familiar with the matter. The joint venture has more than 2,000 fuel pumps across the country.
Although the company has not issued any formal instructions, operators of Jio-BP petrol pumps have started imposing limits to prevent panic buying and prevent their stations from closing due to surge in demand, the people said on condition of anonymity because the information is not public.
The cuts come as India, the world’s third-largest oil consumer, grapples with the fallout from the weeks-long closure of the Strait of Hormuz – a vital route for global shipments of crude oil, petroleum and natural gas. While a fragile US-Iran ceasefire holds, tanker traffic remains disrupted and insurers continue to classify the area as high-risk.
A Reliance Industries spokesperson said there are no restrictions on how much fuel customers can buy, while acknowledging that such cases could be the result of a “localized” situation.
impact
While Reliance runs only 2% of the more than 102,000 fuel stations in India, it is the first operator to move ahead of the price hike in rationing supply, reflecting the growing uncertainty rippling through India’s energy market.
The state-run companies — Indian Oil Corporation Ltd., Bharat Petroleum Corporation Ltd. and Hindustan Petroleum Corporation Ltd. — that control most fuel stations have not officially announced price hikes or purchase limits, but drivers have reported similar anecdotal reports. ₹A limit of Rs 1,000 is being imposed on some pumps.
Another private sector fuel retailer, Nayara Energy, raised diesel and petrol prices last month in an effort to pare losses on retail sales and curb consumption, local media reported. The company, which has about 7% market share, is partly owned by Russian energy giant Rosneft PJSC.
India imports more than 90% of its oil requirements, making it particularly vulnerable to disruptions in the Persian Gulf. Oil prices remain volatile as traders weigh the length of the Hormuz blockade against global inventories and the risk that the ceasefire could falter.
Brent crude gained in early Asian trade on Friday after Saudi Arabia said attacks on its energy infrastructure had reduced its production capacity.
State-owned refiners last cut pump prices in March 2024 under government intervention. Fuel retailers are currently in losses ₹Rs 24.40 per liter petrol sold ₹104.99 per liter on diesel, the federal oil ministry said in a post on April 1.