According to reports, out of 12 million tonnes of bulk diesel consumed per month, consumption of private buses and state transport corporations is about 41 per cent.
KOLKATA: Bulk diesel sales have declined by 14-15 per cent since January 17 when bulk diesel prices were decontrolled, IOC BSE 0.82 % Chairman RS Butolia said in Kolkata on Thursday.
"Sale of bulk diesel has declined by 14-15 per cent since their prices were decontrolled; however, at present we are not sure if this is a permanent trend or a temporary phenomenon. However, there is no legal process as of now to stop bulk buyers from buying from retail outlets. Nevertheless, the government can take a decision," said Butolia.
The Centre allowed oil companies to price bulk diesel sales at market prices while maintaining a subsidy on retail sales. As a result, a litre of diesel is now Rs 10 more if bought as bulk fuel compared to retail prices at petrol pumps.
Oil marketing companies sell bulk diesel to private bus fleets, transportation corporation, power companies, industrial units, railways and defence establishments. Out of these, buses and fleet owners are the ones that can buy from retail outlets.
Bulk diesel constitute about 40 per cent of total sales and officials said retail sales have increased by about 3-4 per cent. According to reports, out of 12 million tonnes of bulk diesel consumed per month, consumption of private buses and state transport corporations is about 41 per cent.
This chunk has the potential to shift to retail sales, more so if the retail outlet owners start offering credits.
