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NEW DELHI: Issuing a strict warning to industrial consumers buying diesel from retail outlets due to differential pricing and creating an artificial shortage of fuel in parts of the country, govt on Wednesday said there were “more than adequate” supplies of petrol and diesel to meet demand.Govt said industrial consumers were diverting their purchases to retail pumps, causing local shortages at the cost of ordinary citizens, and urged industry associations to make them aware of the consequences of such violations. It also asked states and UTs to form special squads and take strict action against bulk consumers buying from retail outlets, hoarders and black marketeers under relevant provisions of the Essential Commodities Act and control orders.According to goverment, nearly 29% of bulk diesel volumes of public sector oil retailers shifted to retail outlets in the current month, while there was a 38% decline in sales volumes at fuel stations run by private oil marketing companies.While diesel in Delhi costs Rs 95.2 a litre for retail consumers, bulk consumers such as industries get it for Rs 134 a litre. Private oil retailers also sell diesel for more than Rs 130 a litre. Officials said there were frequent reports from various parts of the country of shortages at retail outlets, following which an assessment was carried out by both the ministry of petroleum and oil marketing companies. The assessment found that bulk consumers were making purchases from retail outlets.While petroleum minister Hardeep Singh Puri was coordinating with public sector OMCs, states and industry bodies to ensure uninterrupted supply of petrol and diesel to all, petroleum secretary Neeraj Mittal also held a review meeting with chief secretaries of states and UTs, which was attended by industry bodies FICCI and CII.“The picture that emerges from the field is consistent. There is no scarcity of any petroleum product. There is, in pockets, a pattern of arbitrage that is creating the appearance of one,” the petroleum ministry said in a statement.Amid the West Asia disruptions, state-run OMCs have deliberately kept petrol and diesel prices low to protect retail customers – households, two-wheeler commuters and farmers at the pump – while absorbing losses of around Rs 550 crore per day on the sale of petrol, diesel and domestic LPG. “It is not extended to industrial procurement, where pricing tracks international actuals as a matter of standing policy,” govt said.
