Winning Bizness Desk

Mumbai. Giving a non-bearable shock to bulk users, diesel prices have been increased by Rs 25 per liter. This step has been taken after a 40 percent jump in international crude oil prices. However, there has been no change in the retail prices of diesel sold through petrol pumps. It is going to hit public and air transport. There has been a jump of 20 percent in the sales of petrol pumps this month.

Bus fleet operators and bulk consumers like malls have bought fuel from petrol pumps. Usually they procure fuel directly from petroleum companies. This has increased the losses of the fuel retailing companies. Companies like Naira Energy, Geo-BP and Shell have been the most affected. Despite increasing sales, these companies have not yet reduced the volume but now the operations for the pumps will no longer be financially viable.

Rs 122.05 per liter for bulk consumers in Mumbai

Sources with knowledge of the matter said that since the record 136 days the fuel prices have not increased, due to which it would be a more practical option for the companies to shut down the petrol pumps instead of selling more fuel at these rates. In 2008, Reliance Industries closed all its 1,432 petrol pumps after sales dropped to 'zero'. Sources said that the same situation is happening even today. Bulk consumers are buying from petrol pumps. Due to this the losses of these retailers are increasing. The price of diesel has increased to Rs 122.05 per liter for bulk consumers in Mumbai. Diesel is being sold at petrol pumps for Rs 94.14 per liter.

No price hike since November 4, 2021

Similarly, diesel is priced at Rs 86.67 per liter at petrol stations while it costs Rs 115 per liter for wholesale or industrial customers. Public sector petroleum companies have not increased the prices of petrol and diesel with effect from November 4, 2021. However, there has been a jump in fuel prices globally during this period. It is believed that fuel prices were not increased in view of the assembly elections of five states.