Private retailers in India step back

Private retailers in India have stopped adding new retail outlets for petrol and diesel fuel as their sales continue to dwindle due to the high price differential with pumps operated by state-run oil marketing companies (OMCs). Private retailers’ sales of diesel fuel dropped 64% in July over last year with the volumes shifting to OMCs, of which Bharat Petroleum Corp. Ltd. gained the most. Private companies, largely Reliance Industries Ltd, saw diesel fuel sales drop to 88,600 tons in July from 244,900 tons in the same period a year ago. Low domestic sales have pushed Reliance to export more diesel fuel, petrol, naphtha and fuel oil outside the country. (August 24, 2006)